by Stephen Rivers
- Senate hearing to examine AEB, rear-seat alert system costs.
- NHTSA reports low build costs, higher prices for consumers.
- Debate contrasts affordability concerns with road safety benefits.
For the first time since the 2008 financial crisis, top executives from the Big Three automakers, are set to appear and testify before Congress. The session is expected to focus heavily on the ballooning cost of new vehicles, a subject that’s been building political momentum for weeks.
Read: Detroit 3 CEOs And Tesla Exec To Face Congress Over Soaring Car Prices
The hearing, scheduled for January 14 and chaired by Senator Ted Cruz, will gather key industry voices to address what many see as an affordability crisis in the car market.
Tesla won’t send CEO Elon Musk, but VP Lars Moravy will join the lineup alongside leaders from General Motors, Ford, and Stellantis.
Are Safety Features Driving Prices Up?
The conversation is already drawing controversy. Today, new reports suggest that among the things to be discusses is that Republicans believe reducing safety regulation is the way to cheaper cars. Automaker lobbying groups agree, but data indicate that the savings might not be worth the lives lost.
According to the Wall Street Journal, safety mandates including automatic emergency braking and rear seat occupant alerts will be a major talking point. Some regulators question whether these technologies are contributing significantly to higher sticker prices without providing a large enough benefit.
What Does The Data Say?
Supporters of safety technology argue that automatic emergency braking and rear seat alerts are effective at preventing crashes and saving lives. Data from the IIHS showed back in 2014 that automatic emergency braking was slashing crash rates by as much as half compared to vehicles without it.
In addition, industry data indicate that most modern drivers are distracted behind the wheel, whether by phones, navigation systems, or other activities, and that these technologies intervene faster than human reflexes.
The IIHS notes that regulation is the only reliable way to ensure these systems reach all vehicles rather than just premium models. While some critics claim that automatic emergency braking is extremely costly, public regulatory data suggest the cost impact is far smaller.
The NHTSA estimated in 2023 that equipping a heavy vehicle with forward collision warning and automatic braking added at most $316 in end-user cost per vehicle. For rear seat occupant alerts, the cost is even lower.
For smaller passenger vehicles, the cost both for the manufacturer and end-user is likely considerably less these days, thanks to widespread adoption and the obvious economies of scale.
Lawmakers skeptical of the technology argue that the most meaningful safety advances occurred decades ago with seat belts and structural crashworthiness and that the benefits of modern systems are limited relative to their cost.
For now the central question is whether safety mandates are a necessary cost of driving in the modern world or an unnecessary burden inflating prices for all Americans. We’ll find out what automotive executives think on January 14.
AEB is a very effective crash avoidance technology that could be especially beneficial for your teen driver. #TeenDriverSafetyWeek