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Tags: GM Prices to rise $4000 AVG. Due to CAFE Standards

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GM Prices to rise $4000 AVG. Due to CAFE Standards
GM's outspoken Vice Chairman Bob Lutz told reporters today at the Detroit Auto Show the U.S. government's 35 mpg CAFE standard will push car prices up by $4,000 to $10,000 per vehicle, or an average $6,000. Lutz has been a vocal opponent of the regulations, which he believes will harm the U.S. auto industry.
"This is going to be a net average of cost of $6,000 per vehicle which will have to be passed onto the consumer," he said. "The good news is it won't come all at once, because 35 mpg doesn't kick in all at once."
The new standards were approved by the House of Representatives in December. The new CAFE standards will be phased in beginning in 2011. The new law calls for automakers to achieve an average of 35 mpg across their fleets by 2020.
Lutz previously warned GM's future rear-wheel-drive cars might need to be rethought if the government doesn't change its position. In April, he said small cars only count toward an automaker's CAFE average if they're built in the United States. At current prices, it's impossible to build small cars and sell them at a profit, he claimed. Read Article



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SixxFiveSixxFive - 1/15/2008 11:07:02 AM
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Instead of accepting responsibility and being commited to finding a solution, Lutz sets a really poor example by placing the blame on the government. These new CAFE regulations won't harm the US auto industry....his old school mentality will.

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1970toyotamarc1970toyotamarc - 1/15/2008 11:35:34 AM
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Lutz whines about how expensive it will be to meet this (low) goal, while Toyota has publicly claimed their fleet will beat the goal far in advance of its deadline.

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randy33randy33 - 1/15/2008 12:02:06 PM
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Your vote is a decision! You people need to be careful!

No look what you've done!

All you people who vote for those arrogant, tax-loving, regulation-crazy Democrats have finally done it! NOW WE ARE ALL GOING TO PAY THE PRICE for your decision to vote for that idiotic U.S. Representative who thinks "global warming" is caused by SUVs and light bulbs.

"Human-caused Global warming" is an absolute HOAX.

Not only are we in the midst of a declining ice age (which peaked just 12,500 years ago!), but just the very stipulation that carbon dioxide is "pollution" to begin with, as declared by the POLITICIANS who are VOTING FOR this price hike, is absolutely ridiculous! Carbon dioxide, like water, is an essential ingredient for life. An "excess" of CO2 (and what year does one declare to behold the baseline concentration beyond which any additional quantity is "excess"? see chart below, LOL) should no more be considered "pollution" that an "excess" of raindrops on a rainy day!

In fact, pollution from REAL atmospheric contaminants -- such as sulfur dioxide, nasty free radicals, and industrial particulate (crap that ACTUALLY DOES make people sick) WILL NOT be ameliorated by hiking CAFE standards (yet again) on modern passenger cars! ALL THAT CRAP is spewed mainly from OTHER types of vehicles and processes.

SO you people who vote for 'global warming' Democrats -- YOU ARE NUTS. You think you are special? Think you are 'saving the Earth'? HA! LOL! You have NO CLUE what are the real threats to biodiversity on our planet: 1) habitat destruction & fragmentation, 2) poaching, and 3) pollution. You may think you are saving endangered species by voting for lunatics who promise to hike up taxes and CAFE standards on passenger cars, but YOU ARE NOT. This is a tragic irony that brings tears to my eyes.

THINK BEFORE YOU VOTE. LISTEN TO WHAT YOUR CANDIDATES ARE TELLING YOU! Make your decision more carefully! And before you allow your lunatic U.S. Representatives to get into office and enact their anti-CO2 agenda, you need to make them declare first -- back while they're a candidate -- exactly what year on this graph they desire to be THE everlasting, eternal concentration of CO2 on Earth:

http://tinyurl.com/39gnm4

Yes, that's right, have them do it right up front --- BEFORE you vote for them. You are OWED this information by any political globalwarmingist who desires to PUNISH YOU for what are essentially the Earth's natural long-term climate cycles –– deep ice ages followed by periods of undulating warmth that have existed peacefully on this beautiful planet for all of eternity.



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autoproautopro - 1/16/2008 3:32:42 PMView My AgentSpace
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Randy you are one smart SOB.I never belived global warming was anything but normal climate change,good post my friend.


mercuryguymercuryguy - 1/15/2008 1:55:39 PM
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Yep, Raise those CAFÉ standards, the auto industry will only respond by using more nylon screws and plastic parts that break. Who pays the price for higher CAFÉ standards? The consumer. Higher CAFÉ=Lower Quality of materials. This why cars shatter into a million prices in an accident, debris scattered all over the road. The last raise of CAFÉ standards gave us the dreaded donut spare tire to reduce weight. Problem is, the tire only allows you to limp to the nearest gas station so you can call an expensive tow truck. Let’s get real here.

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mercuryguymercuryguy - 1/15/2008 2:01:04 PM
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Years ago, when cars were involved in an accident, it was no problem, just bolt a new fender on and the car is as good as new. Today, the whole car gets totaled, because there is nothing left after they sweep the pieces of the wreckage up. So we all wind up paying more for insurance, to pay for all the cars that are beyond any hope of repair.

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M35MTM35MT - 1/15/2008 3:35:37 PMView My AgentSpace
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Lutz is posturing.

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pacotacololpacotacolol - 1/15/2008 3:37:09 PMView My AgentSpace
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toolatetoracetoolatetorace - 1/15/2008 10:28:56 PM
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Oh. I guess the next article will say 2000 then 1000 if you don't order the MP3 player

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amazinBimmeramazinBimmer - 1/16/2008 9:37:46 AM
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i love it... it would be nice if all the US auto makers were out of business, because of the crap they make. CTS aside, not one i would ever be seen in (even in the passenger seat). they are going to invest billions to upgrade the infrastructure to produce vehicles capable of doing this... when they can leaset afford to do it. serves them right for selling so many hoosier Silverado and F150s. you reap what you sow.

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autoproautopro - 1/16/2008 3:37:42 PMView My AgentSpace
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Insensitive bonehead what about all the American auto workers who would be out of a job!!! Whatever job you have I hope that industry pulls out of the country so you can see how it feels to lose your job when you have a family to feed.JERK!!!!!!!!!!

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SteveSteve - 1/17/2008 5:56:38 PM
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I am disappointed that GM is basically saying that Americans are not as smart as the Japanese.

There is an old saying: "Those who say it is impossible should talk to us who are doing it." Lutz should listen up.

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DW1968DW1968 - 1/19/2008 4:09:39 AM
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The law is being applied to all vehicles, not just GM vehicles. Other automakers are able (and even relatively eager) to comply. So I don't understand what the basis of Lutz's complaint is.

As for "having to" pass the cost on to consumers--first of all, or they could take it out of their profit margin, so it's not that they "have to", it's more like they "want to", and second of all, would it be more fair to keep having ALL taxpayers subsidize the automakers profit margins or pay for environmental clean-up, healthcare, and other related expenses?

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racedogsracedogs - 1/25/2008 12:43:31 PM
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Lutz doesn't give a damn about the consumer, gas prices,or global warming. His only interest is profit and lining his pockets.

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