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  (Source: blog.thesietch.org)
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



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RE: Pulling numbers outta their arse
By Spuke on 1/18/2012 2:55:16 PM , Rating: 2
quote:
suggesting that it is possible to achieve.
Once again, this is NOT the point. Of course it can be achieved. If you throw enough money at it, anything can be done. The WHOLE point of this article is not achievement but AFFORDABILITY. As much as I see people griping about todays car prices (not to mention the clueless that are expecting certain car prices to fall...cough EV's cough), I can't imagine the gripes when an extra $5k is added to car prices. And this doesn't include added cost for new safety regs either. If no one or hardly anyone can afford a new car, these regulations are pointless. And if people are keeping their cars for 10 years now then it will be MUCH longer before THESE cars show up in drivers hands.


RE: Pulling numbers outta their arse
By Paj on 1/19/2012 8:05:31 AM , Rating: 2
Diesel cars regularly meet these numbers without much difficulty (yes thats in US mpg too). Hybrids exceed them easily.

It might be time to face the facts that the age where everyone has a car might be drawing to a close. Roads are already at burtsing point. Investment in modern public transport is a far better solution.

BUT THEN I WONT HAVE MY 6000HP F150 SO I CAN DRIVE TO THE SHOPS DOWN THE ROAD AND COMMUTE 150 150 TO WORK


RE: Pulling numbers outta their arse
By Mahazy on 1/19/2012 8:58:18 AM , Rating: 2
You realize a lot of families have 2 working people/parents don't you? And often the places where those two people work are separated by a significant geographic distance?

So no, I think your comment is absurd and it's abvious your brain isn't geared in reality, it's geared in the eco-nut, save the planet, everyone must sacrifice so we can try to attain some ethereal utopia where we all bike to our jobs (even in winter) and we drive 500lb. electric cars.

I don't like pollution, it's probably the cause of of a lot of poeple's allergies and lung issues (mine included), but I'm not going to risk our economic future, give up some of my freedoms and lower my standard of living to accelerate the change artifically.

We're getting there... just settle down and drink a beer while things improve and evolve. Think how much better we have it now compared to just 200 years ago.


RE: Pulling numbers outta their arse
By Mahazy on 1/19/2012 8:58:31 AM , Rating: 2
You realize a lot of families have 2 working people/parents don't you? And often the places where those two people work are separated by a significant geographic distance?

So no, I think your comment is absurd and it's abvious your brain isn't geared in reality, it's geared in the eco-nut, save the planet, everyone must sacrifice so we can try to attain some ethereal utopia where we all bike to our jobs (even in winter) and we drive 500lb. electric cars.

I don't like pollution, it's probably the cause of of a lot of poeple's allergies and lung issues (mine included), but I'm not going to risk our economic future, give up some of my freedoms and lower my standard of living to accelerate the change artifically.

We're getting there... just settle down and drink a beer while things improve and evolve. Think how much better we have it now compared to just 200 years ago.


"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer














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