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Offlinelonestar2004
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CAFE Rule Will Add $900 to $10,000 to Cost of Car
    #7893138 - 01/17/08 01:44 PM (16 years, 15 days ago)

CAFE Rule Will Add $900 to $10,000 to Cost of Car
By Penny Starr
CNSNews.com Senior Staff Writer
January 17, 2008

(CNSNews.com) - The new Corporate Average Fuel Economy (CAFE) standards - set by Congress and signed into law by President Bush in the new energy bill - will require vehicles to get 35 miles per gallon by the year 2020 and will add somewhere between $900 and $10,000 to the cost of buying a car, dependent upon which expert is consulted.

That cost, high or low, will boost the average price of a new car, which will be passed onto consumers, according to carmakers and independent analysts.

The Comerica Automotive Affordability Index says that the average cost of a passenger car today is $27, 958. If CAFE standards add $900 to the price of a car, it will raise the average car price to $28,858; but if the CAFE regulations cost closer to $10,000 to implement, the average price could go up to $37,958.

Bob Lutz, vice chairman at General Motors, predicts the highest increase per vehicle -between $4,000 and $10,000 - with the average about $6,000.

The American Council for an Energy-Efficient Economy (ACCEE), a liberal group, claims a council study shows a much lower cost increase - about $900 for smaller vehicles to $1,500 for the largest cars and trucks.

Whatever the real cost is, however, the experts agree the consumer will foot the bill.

"No matter what the cost is - $900 or $9,000 - is the consumer willing to pay that much more or should they be forced to pay that much more because of a government mandate?" Kelsey Zahourek, federal affairs manager with Americans for Tax Reform, told Cybercast News Service.

"ATR is against (the CAFE) standards. We think it's government getting involved where it shouldn't get involved - the private sector," Zahourek added.

In fact, Zahourek said, because the CAFE standards are a federal regulation, the cost to consumers is no different than a new tax.

"If the cost is incurred due to a government regulation, it's just a hidden form of taxation," Zahourek said.

Myron Ebell, director of Energy and Global Warming Policy with the conservative Competitive Enterprise Institute, agreed that consumers will no doubt pay thousands more for their vehicle but also that the new cars will be lower in quality and less safe.

Automakers, he said, will have to find other ways to keep costs low, including compromising on performance and comfort. And smaller cars are more dangerous, Ebell said.

"Like my colleague Sam Kazman likes to say, 'CAFE kills,'" Ebell told Cybercast News Service. Ebell cited a 2001 study by the National Academy of Sciences that examined the earlier CAFE standards imposed in the 1970s.

The study says, in part, "While acknowledging that some existing technologies could reduce the fuel consumption of new cars in the next 10-15 years, the study noted that these would increase the cost of cars and trucks and it would take decades before all the current 200 million cars on the road are replaced.

"It also noted that downsizing of vehicles in the 1970s and 1980s may have contributed to an additional 1,300 to 2,600 fatalities (alone)" - a number that could add up to thousands more deaths on American highways under the new CAFE standards, Ebell said.

The ACCEE said that technological advances will mean the new CAFE standards won't mean smaller cars for all Americans, but Ebell disagreed. He said more people will be driving smaller cars not only because smaller and lighter vehicles get better gas mileage, but also because consumers will "choose" them for affordability reasons.

"Our main concern is that CAFE standards limit consumer choice," Ebell said. "And second, the increase in fatalities."

There could be other victims of the CAFE standards, said Ebell. The American men and women who work for automakers could face job cuts, a possibility that would be devastating in states like Michigan, which has the highest unemployment in the nation at 7.4 percent.

"It seems to me that when Congress says over and over again that they care about protecting American jobs and then pass something like this, I think they are being incredibly short-sighted," Ebell said.


http://www.cnsnews.com/ViewNation.asp?Page=/Nation/archive/200801/NAT20080118a.html


--------------------
America's debt problem is a "sign of leadership failure"

We have "reckless fiscal policies"

America has a debt problem and a failure of leadership.

Americans deserve better

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Offlineunbeliever
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Re: CAFE Rule Will Add $900 to $10,000 to Cost of Car [Re: lonestar2004]
    #7893659 - 01/17/08 04:07 PM (16 years, 15 days ago)

That article is terrible. It's pedantic and condescending and makes lame attempts at fear mongering. OMG ENVIRONMENTALLY FRIENDLY CARS WILL KILL YOU!@#@$LOLOZ!@# What horseshit.

As for the substance, what little there is, of the article.. Meh. I'm not generally a big fan of corporate welfare and subsidies and shit, they're grossly out of line and abused these days. But I could get behind one that would a) help fund the cost of "green" research and b) help offset the cost increase during the initial change over. Because yes, it will only be an initial price increase as production methods are modified and to offset R&D. It should not be a permanent cost increase, yet I'm confident the auto-makers will make it permanent. Give an inch, take a mile per gallon.


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Happiness is a warm gun...


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Offlinefreddurgan
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Re: CAFE Rule Will Add $900 to $10,000 to Cost of Car [Re: unbeliever]
    #7894818 - 01/17/08 08:28 PM (16 years, 15 days ago)

This is just obviously a bad idea. If people don't care enough to buy fuel efficient cars then they don't care enough. Making them will only hurt things even more.


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OfflineMrBump
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Re: CAFE Rule Will Add $900 to $10,000 to Cost of Car [Re: lonestar2004]
    #7895220 - 01/17/08 10:11 PM (16 years, 15 days ago)

"It also noted that downsizing of vehicles in the 1970s and 1980s may have contributed to an additional 1,300 to 2,600 fatalities (alone)" - a number that could add up to thousands more deaths on American highways under the new CAFE standards, Ebell said.

cars dont kill people, people kill people. maybe the auto companies and/or the gov could throw some advertising dollars at PSA's explaining to people how to not drive like a jackass.

The big 3 (Crysler, Ford, GM) are dinosaurs. These companies never even attempt to innovate and the quality of their vehicles are subpar compared to the big imports like Honda. so, instead of trying to be creative they blame to government for inacting standards to protect your health and environment.

speaking of advertising, i have been getting the feeling lately that vehicles cost so much b/c of all the advertising $ they spend. It seems like if its not a drug commercial, its a car or truck commercial. drug companies spend way more money on advertising than in R&D, maybe its the same in the auto industry.

*i did forget to bring up the grossly overpaid union workers' salaries add to the price of cars as well.


Edited by MrBump (01/17/08 10:20 PM)


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Offlineunbeliever
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Re: CAFE Rule Will Add $900 to $10,000 to Cost of Car [Re: freddurgan]
    #7896109 - 01/18/08 05:28 AM (16 years, 14 days ago)

Quote:

freddurgan said:
This is just obviously a bad idea. If people don't care enough to buy fuel efficient cars then they don't care enough. Making them will only hurt things even more.




Actually, I'd like to have a choice to buy a green car. Instead, due to the ties with the oil companies we have had gaz guzzling SUVs and "light trucks" flooding the market. Fuck that.


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Happiness is a warm gun...


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Offlinegluke bastid
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Re: CAFE Rule Will Add $900 to $10,000 to Cost of Car [Re: lonestar2004]
    #7896580 - 01/18/08 09:04 AM (16 years, 14 days ago)

Hmmm $1500 up front for a new car that gets 35/gallon

Versus

Hummer that GM estimates gets 13 mpg (for real) x the price of oil in the year 2020 x however many miles you plan to drive your car.


--------------------
:hst:
Society in every form is a blessing,
but government at its best is but a necessary evil
 
- Thomas Paine


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InvisibleSlashOZ
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Registered: 10/20/06
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Re: CAFE Rule Will Add $900 to $10,000 to Cost of Car [Re: gluke bastid]
    #7896829 - 01/18/08 10:18 AM (16 years, 14 days ago)

lol at this article. don't japanese cars already get gas mileage this good? don't japanese automakers also dominate the auto market right now? aren't japanese cars extremely competitive price wise? hmmm i smell bullshit and i think it might just be this article by penny starr.


--------------------
"Life sucks but in this really beautiful way" - Axl Rose
"Life's a bitch and then you die that's why we get high cuz you never know when you're gonna go." - NAS
"When people don't know what you're about they put you down and shut you out" - Black Sabbath
"An eye for an eye makes the whole world blind" - Gandhi
"Look up at me I am God, look down on me and I am evil, look at me I am you." - Charles Manson.
"Don't question my reality." - Me (as far as I know)


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OfflineMaverick
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Re: CAFE Rule Will Add $900 to $10,000 to Cost of Car [Re: SlashOZ]
    #7896970 - 01/18/08 10:53 AM (16 years, 14 days ago)

Yeah america's cars economically are a step behind the rest of the leading nations.

Everyone in detroit's talking about (with fear) how Toyota's seriously putting everything into finding alternative energy sources. I'd be more scared of how they're going to make it past 2020 on their 1960's technology.


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Offlineboomer q
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Re: CAFE Rule Will Add $900 to $10,000 to Cost of Car [Re: Maverick]
    #7897086 - 01/18/08 11:37 AM (16 years, 14 days ago)

This is a stupid article. First of all, raising the standards to 35mpgs by 2020 will do just about nothing for our current global warming situation. Secondly, if American auto makers cant make cars that get 35mpgs affordable in the next 12 years, then they dont deserve to our business. my gf's mom's prius gets 50 mpgs and it cost about 21 thousand. thats not too unreasonable for a car that holds 5 adults, is it? it doesnt seem like ALL automakers would suffer from these regulations... maybe thats an indication about the quality of engineering and workmanship comming from American automakers? why should we make it easier for them to put out an inferior product to their Asian counterparts?

they make sure to tell you that you wont be able to have a big car.... well SUVs dont follow the regular fuel standards anyway.. the current standards are 27 now, is that what you think a hummer gets? or a suburban? or an escalade? no way, these loopholes are already built in to the system, SUVs are called "light trucks" and thus dont have to follow the real standards, why would we think that these new standards would increase efficiency in this area this time?


there are laws in place to protect people, its about time for laws to protect the environment, even if it makes it hard for American auto makers to compete


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I got bags of funk and i sell em by the tons


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Offlinegluke bastid
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Re: CAFE Rule Will Add $900 to $10,000 to Cost of Car [Re: boomer q]
    #7897107 - 01/18/08 11:50 AM (16 years, 14 days ago)

Good points all. I am sure that the those who have already figured out the tax loopholes afforded by buying hummers will have no problem wriggling their way through this one.

Not to mention that hummer doesn't even make its mpg rating available to the public, due to the way it is classified by the government.


--------------------
:hst:
Society in every form is a blessing,
but government at its best is but a necessary evil
 
- Thomas Paine


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