Those CAFE standards that Obama is imposing that will force auto makers to increase fuel efficiency to 62 miles per gallon by 2025? The estimate was that it would add $3,000 and change to each vehicle sold. Turns out, as with all things government, the actual cost is three times higher than the estimate. And this comes from the Center for Automotive Research (CAR) at UofM Ann Arbor. I personally know many of the profs associated with CAR. it is a high-quality org. Via The Detroit News:
Study finds fed mpg goal would mean costlier cars, job cuts
...The Ann Arbor-based Center for Automotive Research said today the average increase in vehicle cost necessary to achieve the higher fuel efficiency mandates range from $3,744 to $9,790 a vehicle.
It's not just the price of the vehicle, but also jobs:
Under the most extreme scenario — with gas prices in 2025 at $3.50 in today's dollars — the maximum fuel efficiency increase could cut more than 260,000 jobs and reduce annual auto sales by 5.5 million vehicles, the study found.
That's far higher than the cost range of $770 to $3,500 per vehicle, depending on the stringency of the emissions limits, that the National Highway Traffic Safety Administration and Environmental Protection Agency has estimated.
Shocker that the regime would lowball the numbers, no?
0 comments:
Post a Comment