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Automakers claim new fuel economy ratings will put hundreds of thousands out of work  (Source: Business Week)
Supporters of increased efficiency standards claim the numbers are inflated

The battle between the auto industry and the federal government over changes to fuel economy regulations is exploding. Lawmakers in Washington want to impose much more efficient standards on future vehicles that could see a fleet wide fuel economy average of 62 mpg in effect by 2025.

Some in the automotive industry argue that the costs to reach the lofty 62 mpg fleet wide average will be much higher than the cost of burning more fuel in less efficient vehicles for consumers. Automakers have previously claimed that the costs would have a dire impact on the industry.

new study by the Center for Automotive Research has been published and the study claims that the rise in efficiency standards by 2025 to 62 mpg could add up to $9,790 to the cost of a new vehicle and will reduce sales by 5.5 million units. The report also claims that the resultant price increase would force a reduction of 260,000 automotive industry jobs due to reduced demand for vehicles by consumers.

On the other side of the battle, those pushing for the increased efficiency standards claim that the tech needed to meet the efficiency standards would only add $770 to $3,500 to the price of a new vehicle.

David Friedman, deputy director of the Union of Concerned Scientists' Clean Vehicles program and supporter of the new efficiency mandate, said, "The Obama administration should ignore this industry-advocate propaganda piece and focus on setting the strongest vehicle efficiency and global warming pollution standards based on credible scientific analysis."

President and CEO of the Union, Jay Baron, says that the main difference in cost between the industry and government studies depends on how much the price of the technology will come down over the next 15 years.

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RE: So what
By RussianSensation on 6/15/2011 2:44:48 PM , Rating: 2
Inflation has outpaced wage growth for most people in the last decade (or more). As a result, real wages have actually declined. So in fact, things only get more expensive with time relative to your wage. The reason your standard of living is largely improving is primarily a result of innovations in the technology and medical fields. However, if you were to compare the cost of modern education, food, energy, etc. they have all become many times more expensive relative to today's average earnings.

RE: So what
By Smilin on 6/15/2011 3:17:13 PM , Rating: 2
You assume I'm not outrunning the rest of the pack.

There will be 9 billion people on this planet pretty soon. A greater and greater percentage of them will be poor. Overpriced food will be more of a concern than an overpriced car.

The point regarding increased standard of living because of technology is an interesting one. While my powertrain might go up $10k do you still think they'll be charging $2500 for a built in entertainment and NAV system?

RE: So what
By surt on 6/15/2011 4:10:58 PM , Rating: 2
No, a nav/entertainment system will run $5k by then, but it will project holograms of your driving route and holographic movies.

RE: So what
By Smilin on 6/15/2011 4:14:06 PM , Rating: 2
hehe that will be the fancy one. Todays one will be the ghetto equivalent of manual roll down windows and cost $5.

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