Federal agencies predict dramatic sales drop for Chrysler by 2025 image

Projections released by the Environmental Protection Agency and the Department of Transportation warn that by the 2025 model year Chrysler sales will drop by more than half.

The bailed-out manufacturer’s sales will be less than half of what they were in the 2008 model year, when the financial crisis began. Predictions for GM are not very positive either. In the 2025 model year General Motors’ sales are expected to increase 3 percent compared to 2008, while overall U.S. vehicle sales are projected to rise 25 percent to 17.3 million vehicles. Volkswagen and Hyundai are expected to more than double their U.S. sales.

These predictions can be found in the administration’s 567-page proposal to implement tougher fuel economy rules for the U.S. auto industry. The proposal, released in November by the EPA and the Department of Transportation, aims to double present standards by raising requirements to an average of 54.6 mpg for each automaker by the 2025 model year.

“The agencies’ projections are based on the best information available to the agencies at the time. Such forecasts are always subject to change as the industry and economy shifts,” NHTSA said in a statement. In a separate release, the EPA said: “The data were from DOE and CSM, a respected independent research firm. When EPA and NHTSA finalize the rule, we will update it with the more current data that becomes available.”