Former Chrysler CEO warns of unintended consequences of new climate standards on auto industry
Biden administration's new climate standards will lead to 'tremendous confusion' and higher prices in auto industry, Bob Nardelli says
Former Chrysler CEO on unintended consequences of new auto climate standards
Former Chrysler CEO Bob Nardelli discusses how the Biden administration’s climate plans could impact the future of transportation.
Former Chrysler CEO Bob Nardelli warned of the unintended consequences of the Biden administration’s new regulations and emissions standards on the auto industry on FOX Business’ "Mornings with Maria" Thursday.
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BOB NARDELLI: I lived through this period, the Obama period, when they were increasing the regulations on emissions. And again, I would say the auto industry was trying to do right voluntarily. They were using best available technology throughout this entire process. And we were making tremendous strides. The interesting thing about these standards is the key word here is ‘fleet-wide.’ So if you're not able to meet those standards, what it could force an OAM to do is to reduce the amount of trucks, large SUVs, and then only offer its customers small, compliant vehicles that would then, on a fleet-wide basis, meet the [corporate average fuel economy (CAFE)] standards.
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We see General Motors moving towards more and more electric because they know the cost of capital, capital allocation. If they're going to have to spend it to improve fuel efficiency, they might as well convert to electric. And yes, it is going to raise the cost of electricity.
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We already see the car park at about 11 years, 280 million units out there. And what I would say is that people will retain their cars longer than pay higher prices. And the higher prices are the result of availability and no longer having to provide these tremendous discounts to get you into the showroom to make that new car purchase. So what do you think about those hidden agendas of moving to electric -- putting 500,000 charging stations out there, but no one knows how the power is going to get there and who is going to regulate those -- who's going to be in charge of the retail side of those charging stations? So I think we've got tremendous confusion for this industry going forward.
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