DETROIT -
The federal government lifting fuel-economy standards to levels that are too “aggressive” could run the risk of meeting some resistance from consumers who may not be able to afford the costs that come with, according to Ed Tonkin, the chairman of the National Automobile Dealers Association.
NADA explained that the U.S. Environmental Protection Agency and the Department of Transportation are proposing that within the next 15 years fuel-economy standards exceed 60 miles per gallon.
Tonkin, in an address to the Automotive Press Association on Thursday in Detroit, contends this could be risky, possibly preventing some consumers from being able to make purchases. Such public-policy decisions need to weigh the magnitude their risks carry, he argued.
 “NADA has long supported improvements in fuel economy, but it’s also our role to raise some tough questions so there’s no rush to judgment,” Tonkin noted.
He added: “We would all like to believe consumers would be willing to pay whatever it takes to reach such a worthy goal. But will they? Or is this another example of getting ahead of the consumer, pushing too far, too fast? Will huge numbers of consumers be priced out of the market?”
Tonkin also said that a consumer is “the most important person in the auto industry.” He also emphasized that “the most important factors for a car buyer are overall price and monthly payment.”
“Nothing happens without a buyer,” Tonkin added. “My job is to try to match supply and demand every single month everywhere I have a dealership. And this is true of every dealer in the country. Consumer demands vary from market to market. And consumer preference always prevails.” 
In fact, fuel economy is not necessarily the most important thing to all consumers, he suggested. The biggest priorities for consumers when they shop are convenience, predictability and affordability, Tonkin further noted.
He argued that advanced technology must accomplish the following: being affordable and allowing all American access to transportation.
“We are cognizant of the ripple effect of higher (vehicle) prices,” Tonkin noted. “The risk is: if these fuel economy regulations are overly aggressive, it will price Americans out of the market. The same is true for credit.”
Discussing its efforts in Congress regarding financial services, NADA strived to “keep auto credit affordable and accessible,” Tonkin pointed out, noting that NADA met its goal.
“Despite huge odds against us, we prevailed because a majority of both the House and Senate recognized the automobile is a necessity of modern life,” he shared. “[The automobile] is an essential building block of the U.S. economy.”
Tonkin further emphasized that NADA’s aim in the midst of ongoing credit and fuel economy battles being fought is to make sure that affordable credit and transporting are available to consumers.
He said that “our hope is regulators will listen to reasonable arguments and address legitimate questions, just as Congress did.”
Tonkin continued: “We all hope there is some future technology that’s affordable and will get us to 60 MPG sooner than later. We all hope greater fuel economy will reduce our dependence on foreign oil. And we all hope advanced technology will further cut greenhouse gases.
“But we have to look beyond hope,” he added. “Public policy has to take into account the harsh realities of the marketplace.”