johnnymk

http://www.cnsnews.com/ViewNation.as...20080118a.html

(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.

Daedalus

Uh, yeah. Because pollution, global warming and the depletion of natural resources are short-term problems.

Jeffbx

Man, I've been saying that for a loooong time. To get high mileage you either give up lots of weight & goodies (no air conditioning, smaller cars, manual transmissions, I-4 engines with 70HP) OR you pay a ton for the technology (VVT, complex computers, etc).

InfiniteNothing

I wonder how much all that expensive platinum in your cat costs.
I wonder how much less expensive gas would be if they alowed it to be leaded.
Airbags?

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renovation

we all be driving one of these or a look a like to it.

see one of my neighbors just got one.After months of planning and preparation, the new smart USA dealership on Telegraph in Bloomfield Township has delivered its first automobile to a genuine customer.
Roger Stam, 60, of White Lake Township took delivery Thursday of a brand-new smart convertible, with a sticker price of $17,895. Stam had put down a $99 reservation fee in March 2007 and waited.

The smart USA gets 33 miles per gallon in city driving and 41 miles per gallon on the highway and has a distinctive European flair, Schembri said. Schembri, said smart Center in Bloomfield Township is the flagship for a network of premier dealerships across the United States. smart expects to have 74 dealerships in operation by June and the company's sales and logistics operations will be directed from its tiny headquarters tucked in behind the small showroom, housing a staff of about 20.http://www.theoaklandpress.com/stori...80118201.shtml
the dam cars to small for my liking and it also looks like it be a death trap even if tap by a VW bug !
for a better view of this car and the companys web site http://www.smartusa.com/smart-fortwo-safety-design.aspx
they design it so for side protection the tires are to work as your side impact protection .(that sure make me feel good ) seeing this car has to be so light it. just roll on its side and keep rolling till you are exjected or comes to rest on a stop larger object .(disclaimer just my personal thoughts no )
also wouldn't drive it over the big mac bridge !
How fast does the smart fortwo go?
The top speed of the smart fortwo is 90 mph (Electronically limited).

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InfiniteNothing

Because used cars will cease to exist? If everyone drives one you don't have to worry about looking uncool or being hit by a heavier car right?

tupacboy

hmm i wonder how much $900 will be relative to inflation by 2020...

VTGreg

The Smart only gets 33 mpg in the city and 41 mpg on the highway??? And they expect to sell many of these? You need some serious mileage to offset the risks of driving one and the mileage doesn't compare with many larger cars.

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cheapie

i agree. that's pretty low for such a tiny car!

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johnnymk

Yes, that is pitiful gas mileage. 55 mpg highway and people might consider it, but not at 41 mpg.