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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: Because who knows better
By theapparition on 6/16/2011 9:52:13 AM , Rating: 2
Marketing's primary purpose is to distinguish your brand and product above the competition. It can also create demand for new products. Certainly, marketing has it's uses and I wasn't dismissing it entirely.

But the idea that the auto manufacturers created the demand for SUVs by marketing them is ridiculous drivel. Could it be that people just like them? In the 60's the family truckster was the van, then the station wagon in the 70's. 80's was decade of minivan, 90's of SUV and 00's is of crossovers. Consumer trends shift and manufacturers are more than happy to sell whatever people demand.

As for your Intel vs. AMD scenerio, everyone seems to have short term memory on the situation. P4 Willamette was far superior to anything that AMD had at the time. How many AMD systems overheated due to poor thermal management. P4 Northwood was extremely competitive, at first better, then towards the end of it's life getting eclipsed by AMD. Some benchmarks went one way, some went the other. P4 Prescott was a terrible chip, and the time when AMD's offerings were clearly superior. But in the whole "P4 war", AMD only had a clear product advantage for a short time.

As the other poster commeneted, there were many other reasons why people stayed away from AMD.


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