The net benefit is put at just $24 billion or, using households as a proxy for families, a princely $181 per household spread over five years. The $925 figure, meanwhile, equates to less than 2% of today’s average vehicle price. Even assuming it were actually realized, at $3 per gallon it would be eaten up by extra gasoline costs within three years.
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In the real world, relaxing mileage standards, along with the earlier removal of penalties for missing them, will spur Detroit to sell more of the higher margin, lower fuel-economy, trucks and SUVs at the core of its business model, as opposed to shifting production toward smaller, cheaper models.
The fuel economy standard being repealed is one that’s incredibly beneficial to consumers — it both encourages the production of less expensive vehicles, and saves on fuel costs.
That would be if prices were set on what it costs to produce, and not set to maximize profits…
We see it with EV discounts too, if people will pay 60k for an EV and the government knocks 5k off with a tax credit, they price the EV at 65k and corporations are essentially given tax payer money as a bonus because when the EV rebates go away, they drop the price.