Key Points of the Hearings
A Historic Event for the Auto Industry
For the first time since the 2008 financial crisis, the leaders of the three largest automakers will appear to testify before Congress. The session is expected to focus on the rapid increase in the cost of new cars – a topic that has gained political weight in recent weeks.
Participants and Date of the Hearings
The hearings, scheduled for January 14 under the chairmanship of Senator Ted Cruz, will bring together key industry representatives to discuss what many consider a crisis of affordability in the car market. Tesla will not send CEO Elon Musk, but Vice President Lars Moravy will join the leaders of General Motors, Ford, and Stellantis.
Safety Features and Their Impact on Prices
The discussion is already causing controversy. New reports indicate that Republicans see cutting safety standards as a path to cheaper cars. Automaker lobbying groups agree, but data suggests the savings may not be worth the lost lives.
According to reports, mandatory safety requirements, including automatic emergency braking and rear seat passenger alerts, will be a main point of discussion. Some regulators doubt whether these technologies significantly increase prices without corresponding benefits.
Effectiveness of Safety Technologies
Proponents of safety technologies argue that automatic emergency braking and rear seat passenger alerts effectively prevent accidents and save lives. Data from the Insurance Institute for Highway Safety back in 2014 showed that automatic braking reduced the frequency of accidents by half compared to cars without it.
Furthermore, industry data indicates that most modern drivers are distracted at the wheel by phones, navigation systems, or other factors, and these technologies intervene faster than human reflexes.
The Institute notes that regulation is the only reliable way to ensure the spread of these systems to all vehicles, not just premium models. While some critics claim that automatic braking is extremely expensive, regulator data points to a much smaller impact on cost.
The Real Cost of Safety Systems
In 2023, the National Highway Traffic Safety Administration estimated that equipping a heavy vehicle with forward collision warning and automatic braking added a maximum of $316 to the cost for the end consumer per vehicle. The cost for rear seat passenger alerts is even lower.
For smaller passenger cars, the cost for both the manufacturer and the consumer is likely significantly lower due to widespread adoption and economies of scale.
Arguments of Skeptics
Lawmakers skeptical of the technology argue that the most important safety achievements occurred decades ago with seat belts and structural integrity, and the benefits of modern systems are limited compared to their cost.
AEB is a very effective crash avoidance technology that could be especially beneficial for your teen driver. #TeenDriverSafetyWeek — IIHS (@IIHS_autosafety) October 22, 2022
Conclusions and Perspectives
Currently, the main question is whether mandatory safety requirements are a necessary price for driving in the modern world or an unnecessary burden that increases prices for all Americans. We will find out what the automotive leaders think on January 14.
The hearings take place against the backdrop of growing attention to technologies that could prevent thousands of accidents annually. The experience of other countries suggests that the mandatory implementation of similar systems significantly reduces road injury rates, casting doubt on the economic rationale of abandoning them for the sake of immediate savings.