Print 46 comment(s) - last by toyotabedzrock.. on Jan 25 at 3:52 PM

U.S. regulators say it isn't a big deal, since consumers will save on fuel over the vehicle's lifetime

A National Automobile Dealers Association (NADA) official said a new Corporate Average Fuel Economy (CAFE) proposal could add as much as $5,000 to the sticker price of a new vehicle.

The new CAFE proposal aims to increase the average fuel economy of cars and light trucks sold here in the U.S. to 54.5 mpg by 2025 in an effort to reduce greenhouse gas emissions and lessen the country's dependency on foreign oil.

Don Chalmers, chairman of NADA's government relations committee, announced in a Detroit hearing for the proposal that nearly doubling today's fuel economy standards would force manufacturers to use expensive "fuel-saving technologies" that would bump up the sticker price of a new vehicle an extra $5,000. NADA is expected to release a study next month showing that the costs for the new higher fuel-economy standards will overshoot government estimates by over 60 percent (meaning an extra $5,000 to the sticker price for new 2025 models).

Chalmers argued that an extra $5,000 would put many potential buyers out of the new-car market because it could add another $60 to $70 to a monthly car payment and hurt a customer's chance to receive financing.

"I want to sell more fuel-efficient cars," said Chalmers. "If the customer can't get financing, it makes no difference."

U.S. regulators see the situation differently, though. Many believe the extra $5,000 wouldn't be an issue because customers save on fuel over the lifetime of the vehicle.

"We're hearing broad support," said Margo Oge, director of the Office of Transportation and Air Quality at the Environmental Protection Agency. "What we heard is that this standard will create green jobs. This is what the consumer wants. This is where the companies want to invest. So, overall, it's been very positive."

Other supporters for the new CAFE proposal by the Obama administration include 13 major automakers, such as Ford Motor Co., General Motors, and Chrysler; United Auto Workers (UAW), and environmental groups like the National Wildlife Federation.

"These proposed rules will reduce the pollution that contributes to climate change, significantly reduce America's dependence on foreign oil and save American families money at the pump," said Bob King, UAW President, who added that the proposal could save customers around $4,000 over the life of the vehicle. "They will also create jobs in the auto industry and throughout the economy."

"This proposal provides our industry both a single program moving forward, as well as regulatory framework that enables manufacturers to plan and invest for the future with confidence," said Sue Cischke, Ford Motor Co.'s vice president of sustainability, environment and safety engineering. "We are committed to working with you to finalize these regulations. The standards proposed are aggressive, but so are the demands from our customers for greater fuel efficiency."

Others, such as Volkswagen AG and Daimler AG, are on Chalmers' side with opposing the new CAFE proposal. They say the new proposal offers "no new incentive for diesel cars."

The hearing for the proposal was one of three that will be held to give the public a chance to comment. The other two are scheduled for January 19 in Philadelphia and January 24 in San Francisco.

Source: Automotive News

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

By Brandon Hill on 1/18/2012 10:16:36 AM , Rating: 1
I think you're being incredibly optimistic. I just saw a report yesterday saying that the average age of vehicles on the road today is something like 10.4 years, the highest its been in quite some time.

With this economy, I don't see that changing anytime soon. Gas is here to say, at least for the next 50+ years or so. Hell, until electric "quick charging" infrastructure is as robust as gas stations, it may take even longer.

By Stuka on 1/18/2012 10:38:40 AM , Rating: 2
Agreed. Very optimistic there.

There's no way electric will replace gas until you can provide the equivalent experience. We're 50+ years away from having an electrical source that can recharge/refuel within a reasonable amount of time to demote gas and be fully market ready and scalable. There are only so many elements on the periodic table, there are only so many ways they can interact to release energy, and beyond that there are finite amounts of each of them on the planet, and most likely only a third of which are accessible due to political constraints. There are a lot of problems, a lot of equations, and a LOT of testing... which means dollars. Research is not a natural resource which grows in a field in Iowa. It can not be forced into submission. It cannot be legislated. It is real work, and it can only be done so fast.

By Mint on 1/18/2012 2:24:02 PM , Rating: 2
While he was wrong saying "running", I don't think he'll be far off if he instead said "buying".

By 2025, I think the vast majority of new cars sold would be PHEV. By then we'll easily be getting 10-20k cycles from a battery before it dies, so it'll be much more cost effective than gasoline/ethanol over it's lifetime, which will cost more than today due to India, China, and hopefully Africa developing.

Even from a performance point of view, electric will soon be the way to go. Going from 100kW to 400kW will cost and weigh much less than gasoline.

By Jedi2155 on 1/19/2012 5:29:47 AM , Rating: 2
CARB (California Air Resource Board) has many scenarios on expected new vehicle purchases. 2025 is still optimistic to say most vehicles won't be Gas (or Diesel).

Here is one (of many)scenario

I feel price is still the biggest hurdle but by 2020, I expect an EV to be comparable in everyone single aspect to a Gas powered vehicle. Other factors though, will still make gas powered vehicles more desirable (high MPG will make cost to fuel less of a factor), quick fill up etc.

I do not believe our electric infrastructure to be able to handle 40% EV's at its current state BUT there is plenty of capacity right now. California can handle up to 2 million simultaneous EV's through SPARE capacity during the night no problem (that's 6.6 to 20 gigawatts), and if we use other generation and import power from other states. However 2 million though, is just 1/16th of the 32 million vehicles registered in California alone. Each new average (3 GW) nuclear plant though, can handle another million or so we can easily expand provided we will build that.

Still, I think a good healthy mix is the best way to handle our future transportation needs, but EV's are still in their infancy stage. I'm doing my part, just ordered my Volt last weekend :D.

By PrinceGaz on 1/19/2012 9:22:49 AM , Rating: 1
Not every EV needs to be fully charged every night.

In fact according to some research I've just made up, current EVs with 100 mile range on average only require 28% charge each night, so provided the charging points are designed to use power intelligently that means there is capacity to cope with 3.5x as many vehicles; so the spare Californian capacity could handle 7 million vehicles rather than only 2 million.

Unless all 7 million EV owners all decide to go out one day and fully drain their batteries.

"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Laptop or Tablet - Which Do You Prefer?
September 20, 2016, 6:32 AM
Update: Samsung Exchange Program Now in Progress
September 20, 2016, 5:30 AM
Smartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki