Is COVID-19 impact and SAFE rule an enabler on investment reduction to meet regulation?
IHS Markit's newest whitepaper focuses on the impact of COVID-19 and implementation of SAFE rule, with a nearly exclusive focus on change in market size for various technologies and change in investments by automotive manufacturers, for passenger cars (PCs) and light-duty trucks (LDTs) combined. To understand the full impact of the new SAFE rule requires the comparison of investments in fuel-efficient technologies during Obama-era CAFE standards to the comparable investments required under new SAFE rules. This paper evaluates the economic impact, including the vehicle sales, the powertrain investments required by automotive manufacturers to meet the fuel-economy standards and comply with the regulations (covering Obama-era CAFE standards and SAFE rule), underlying powertrain technology cost-benefit for selective car manufacturers and thereby arriving at potential avoidance of powertrain investment with the introduction of SAFE vehicle rules.
This whitepaper takes a deep-dive into the impact of COVID-19 and SAFE rules. Understanding the impact of SAFE rules and COVID-19 on US market sales in the short term and mid term.
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