Bob Lutz, former vice chairman of General Motors Co., Thursday told SAE World Congress he predicts government fuel economy regulations will boost the price of a vehicle by $5,000.
That's much higher than the government has predicted vehicle prices will rise by 2025, when automakers must meet an average 54.5 miles per gallon for cars and trucks.
New fuel economy rules finalized in 2012 are expected to add $1,836 to the price of a new vehicle by 2025. Prices for trucks will increase $2,059 on average, while the price of a cars will rise $1,726, according to the Obama administration.
"We're on the way to my $5,000," Lutz said during his keynote address at SAE. "If the government says $1,800, it'll probably be about double that by the time the cars hit the road."
Read Article