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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 JediJeb on 6/16/2011 5:52:07 PM , Rating: 2
Maybe the majority isn't the lazy incompetents but those willing to work harder and more efficiently at a lower wage yet are barred from competing for the jobs by laws that only allow the industries to hire the more expensive workers regardless of how hard or efficiently they can work.

It has turned into a situation of minority rule with minority rights instead of majority rule with minority rights as our laws are intended to be. Union automotive jobs and state highway workers are two groups that come to mind with this. Both groups, once hired and through the initial 60-90 day trial period become almost impossible to fire no matter what they do or don't do on the job and raises are only based on time worked and have nothing to do with how well you do your job. But you know that is exactly what is being taught in the schools now days too, everyone is equal and all deserve the same things regardless of whether or not they put in any effort.


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