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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 GTVic on 6/16/2011 3:26:25 PM , Rating: 2
The question is, why do Americans buy larger disposable vehicles. Why buy a Dodge Caravan when the evidence is all over the road that it will rust out at the same time as all the parts start failing which is right after the warranty expires?


RE: Because who knows better
By mindless1 on 6/17/2011 11:01:57 PM , Rating: 2
That's unfounded nonsense. Certain american automobiles do have quality control issues but if there's any vehicle that I always think of totally rusting out it would be the old toyota pickup trucks and that was over 20 years ago + age of truck.

The answer is obvious, Americans aren't tricked into squeezing themselves into tiny spaces, they can afford something larger because of the volume of larger cars being made reducing their cost per unit, and that with the gas prices being lower.

In america, the little econobox cars are the disposable ones not the larger cars, because of their higher RPM engines, their weaker suspensions, their lack of cargo space, how badly they get damaged in accidents making repair not cost effective, etc.



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