Welcome to the Daily 5 report for Wednesday, Dec. 3.
It could be quite the important day for the auto business Jan. 14. That's when Senate Republicans plan to hold a hearing on one of the industry's biggest issues: vehicle affordability.
That's the good news.
The bad news: Reportedly, senators plan to argue that expanded vehicle safety technology has driven up costs without equal benefits.
Our editorial today urges industry executives who are called to testify to vigorously reject this notion.
How did we get here?
The Wall Street Journal, citing anonymous sources, reported that Republicans on the Commerce, Science and Transportation Committee "plan to contend that the most effective vehicle-safety advancements — seatbelts and improved crashworthiness — occurred between the 1960s and 1980s, and that benefits have dwindled since."
The committee has jurisdiction over the $300 billion highway bill that includes NHTSA funding.
The GOP members want to roll back vehicle safety regulations the way they and the Trump administration scaled back emissions rules this year, The Journal reported. In other words, cut the red tape regardless of the societal costs, and leave safety up to the market.
New-vehicle affordability is no doubt a huge challenge, but as our editorial explains, improved safety equipment isn't the reason prices have risen more than 30 percent since before the pandemic.
Yes, the technologies contribute to rising collision repair costs — but those are offset by collision prevention and mitigation of more serious crashes through automatic emergency braking and obstacle avoidance.
If the senators want to dive into why vehicles have become so expensive, a good place to start might be consumers' buying preferences.
For more than a decade, consumers have turned away from smaller, more economical sedans in favor of larger and larger pickups, SUVs and crossovers.
That's it for today. Enjoy the rest of your day. If you want to view this story on your browser, click here.
— Wes Raynal, assistant web editor
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