Consumers will pay for fuel-efficient vehicles
Published 10:02 am Friday, August 5, 2011
American consumers should be wary of the deal announced recently by President Obama to double overall fuel economy in cars and light trucks to 54.5 mpg by 2025.
Guess who will pay the higher cost of those government mandated fuel-efficient vehicles?
Althea Chang, an auto industry writer for Forbes.com, said the new rules could eventually cause new car prices to rise, perhaps prohibitively for many lower-income households.
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She cited auto analyst Art Spinella, president of CNW Marketing Research, who said to reach that 54.5 mpg average fuel economy rating that automakers would have to spend more money developing hybrid and all-electric (battery) operated vehicles. …
Automakers already have an important incentive in building more fuel-efficient vehicles. They are easier to sell when the cost of gas rises.
Unreasonable fuel standards imposed on automakers by big government will likely result in higher vehicle costs, fewer sales, reduced workforce and less spending by consumers.
That gloomy economic outlook is what Obama and Democrats are offering Americans in this 54.5 mph fuel-economy shell game.
The (Lorain) Morning Journal