More Videos
- Growing Sub-Prime Auto Loans - New Troubles for Automakers?
- Savings at the Pump Still Supreme for Car Buyers
- GM Says It's Dropping Out of Super Bowl Ad Race
- Two New Models, Two Different Drivers in Mind
- GM Still Likes Its No-Facebook Ad Strategy
- World's Biggest Brands Flex Their Muscles
- A New World Record: 80 Million Vehicles... and Counting
- Is Toyota Back?
- Ford Cuts Summer Idle Time at US Plants, Will GM Follow?
- Auto Stocks Stuck in Neutral
MOST SHARED
- Why German, UK Bond Yields Will Go Even Lower
- Newedge to Leave Greek Stock Market
- Greek Party Leading Polls Pledges 'Business-Friendly' Country
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Southern Europeans Wire Cash to Safer North
- With or Without Euro, Europe Must Raise Its Game
- Italy 2-Year Borrowing Costs at Peak Since December
- Fresh Fears as EU Finalises Reform Plans
- Lloyd's of London Prepares for Greek Exit-Paper
- As Bank Loans Dry Up in Spain, Small and Medium Businesses Fight for Life
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Main Players in the Greek Election
- Italy 2-Year Borrowing Costs at Peak Since December
- Euro Bond Wins Supporters, but Details Remain Vague
- German, UK Bond Yields Will Go Even Lower
- Labor Board Member Resigns Over Leak to GOP Allies
- Loan Scheme Launches for Youth Business Start-Ups
- Southern Europeans Wire Cash to Safer North
- With or Without Euro, Europe Must Raise Its Game
RSS FEED
Behind The Wheel
Text Size 
Why New Fuel Rules Tick Off Some People
 |
Photo by: Pete Souza President Barack Obama |
Some have e-mailed me the new rules will make SUVs too expensive for the average person. Others have told me the President should be pushing diesel fueled vehicles instead of increasing mileage requirements. My favorite was from one blogger who told me wealthy reporters like me don't mind the new rules because we'll be the only ones who can afford a sports or performance car. Yeah, If you buy that, I've got a stack of $100 bills you can light on fire with me and the other richie rich folks.
Are these concerns legitimate?
 |
The idea people won't be able to afford cars that meet new fuel standards doesn't fly with me. The White House estimates the average cost to make vehicles meet the guidelines will be $1,300. But critics are acting like cars and trucks are going up by $1,300 tomorrow. That's not true. The costs will rise gradually over the next 5-7 years. So the cost of vehicles will, in theory, climb by $200 a year. Worth noting, but certainly not prohibitive.
What about the idea President Obama should be pushing diesel powered vehicles because they are more efficient? I certainly understand where people are coming from with their fondness for diesel. Unfortunately for them, diesel has struggled to catch on in the U.S. the way it has in Europe. That doesn't mean we should abandon diesel, but I also think the President should not single out and push diesel. That's the job of the free market.
Finally, do the new rules mean the end of sports and performance cars? Not at all. Auto makers will still make limited runs of sports and performance cars. And yes, some will still have 8 cylinder engines. Again, they won't be sold in huge numbers, but they won't go away. The auto makers know the new fuel standards call for a fleet wide average of 35.5 miles per gallon. That means there will be room for lower mileage performance cars along with the hybrids that will get 45 or 50 mpg. And the new rules apply only to new car and truck sales. They don't stop tuners from modifying existing models. So if you want to put a gas guzzling 8 cylinder engine in VW bug, so be it.
The new rules will certainly mean changes to our cars and trucks, but those changes are not a sign cars as we know them are going away forever.
_____________________________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- General Motors [GM
Loading...
()
]
- Toyota Motor [TM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
_____________________________________
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes
