- Nov 7, 2012
What Obama's win could mean for the auto industry over the next 4 years
So what of the future of the auto industry? Perhaps the initiative with the most immediate impact is the continued pursuit of the Corporate Average Fuel Economy standard of 54.5 miles per gallon for cars by 2025. Some dealers have voiced displeasure with the added price of making these vehicles more fuel efficient. Additionally, a new challenge is ensuring those standards are actually met and automakers are reporting fuel economy numbers properly – a reality recently experienced by Kia and Hyundai. Still automakers in general approve of having clear standards to which they can refer.
The President's re-election should see the returned attention to electric vehicles as well. This year, Obama proposed an increase in the tax credit for electric vehicles, from $7,500 up to $10,000, in the pursuit of 1 million electric vehicles on the road by 2015.
Another area where regulation will be pushed is in vehicle safety, where the Obama administration will seek to require all new vehicles to have a backup camera by 2014. Other regulations may be pursued in the area of navigation and advanced digital displays, and the safety impact of this rapidly progressing technology. With no reelection to concern him, Obama will likely double down on efforts to see through these initiatives in fuel economy and electric vehicles.