Bob Lutz of GM claims that CAFE change could add $5K to $6K to price of new car

So, I just wanted to bring this post back to life.

Now that this version of CAFE standards is indeed going through (watered down though it may be, to mix my metaphors)...does he still feel this way about a potential $5,000-$6,000 per unit price increase, I wonder...?

I'm curious if any of our GM stalwarts are concerned, or if they have any input on GM's current stance vis a vis fuel economy increases.

 

If he says $5,000-6,000 it's probably more like $500-600. It will be a gradual process and by the time it kicks in, yes, they sticker will be $5,000-6,000 more. Because they'll see this as an opportunity to rake in a glutonous profit and blame it on CAFE.

 

Three observations:

1. It's probably more accurate to say "price of a new SUV" then "price of a new car".
2. The average price of mid-sized SUV is $30,667. You can by a Yaris for about $12,000. People don't buy SUVs for cost savings.
3. With lower operating costs, SUV owners would recoup much of any increased price.

Really it seems like a silly argument to push on the government/consumers, because accepting its premise means agreeing to the idea that we only want to help the environment and reduce our dependance on foreign oil if it doesn't cost us anything. Sometimes it's more costly to do the right thing, but I think we come out better in the end for it.

Not that I'm a fan of Sum 41, but I was reminded of these lyrics:

 

i've bought one american car
since i could legally drive at 17---- 38 years ago
and it was a mistake...then (27 years ago)
and it would be a mistake now.

Froley

 

I cannot follow the arithmetic Froley, but I agree with the sentiment

 

<div class='quotetop'>QUOTE(Froley @ Jun 22 2007, 08:20 PM) [snapback]466648[/snapback]</div>

Here here! I completely agree. Never bought a 2nd American car. If GM comes to market with a pure EV I would consider it though.

 

<div class='quotetop'>QUOTE(cwerdna @ Apr 5 2007, 03:05 AM) [snapback]418105[/snapback]</div>

Only a moron would believe this. If Lutz were interested in cost containment he would have the Board of Directors review and reduce executive compensation. How much does that add to the price of a car?