Seriously though, the purpose of those regulations is to prevent upstarts from making simple, cheap, reliable vehicles and to protect the incumbents. Gotta have a big bank account and a lot of lawyers to redesign and crash test a handful of vehicles every few years.
Modern hybrids still don't match (or barely match) the gas mileage of old, small, lightweight cars despite being substantially more complex, less recyclable, less repairable, and using substantially more (and more exotic) materials in production.
Ouroboros regulations only exist to justify their own continued existence. Cars get bigger? More regulations on smaller (less safe) cars, making cars bigger. Rinse and repeat.