NADA likely to oppose federal new-car labeling proposals

(August 31, 2010) The National Automobile Dealers Association said today it would likely oppose a federal proposal to label new vehicles starting with a letter grade from A+ to D based on their fuel economy and emissions, according to Automotive News.

(See an in-depth look at the proposed labeling in an earlier post on MotorwayAmerica).

NADA is one of several criticisms voiced over the proposed new labeling, which was unveiled Monday. It has been endorsed by many environmental groups.

“NADA opposes changes that would confuse the buying public, make vehicle purchasing decisions more difficult or treat certain automakers or fuel types unfairly,” NADA spokesman Bailey Wood said in an e-mail.

The administration is considering two options for window stickers starting with 2012 models. One approach would feature a letter grade. The label also would estimate the vehicle's fuel-cost savings over five years compared with similar vehicles.

The second proposal would keep the current label's focus on fuel economy and annual fuel-cost projections. A sliding bar underneath would compare the vehicle's fuel economy and tailpipe emissions with those of similar vehicles.

NADA “will concentrate on” the second option, Wood said.

Current labels must show how many miles per gallon a car gets and its estimated annual fuel cost.

The administration is seeking public comment over the next 60 days before it adopts a final rule.