Nov 17, 2011 6:18 PM GMT
The irony is that at least in the short to medium term this could mean far more pollution as people choose not to upgrade their cars to new ones which have progressively become far more fuel efficient. Also unsurprisingly is a voice of support form the President of GM, the recipient of substantial bailout dollars.
A proposed U.S. rule requiring automakers to double average fuel economy of vehicles to 54.5 miles per gallon by 2025 may cost $157 billion, two agencies said in a draft.
The standard would add an average of $2,000 to the price of each new passenger vehicle sold by 2025, the National Highway Traffic Safety Administration and Environmental Protection Agency said in a proposed rule posted today on NHTSA’s website. Benefits of $419 billion to $515 billion in fuel savings would offset the costs, the highway agency wrote.
“It’s probably a good thing long-term,” Mark Reuss, president of General Motors Co. (GM)’s North America operations, told reporters today at the Los Angeles Auto Show. “There’s a blend here of things that people will and won’t pay for. It’s our job to make sure we offer what people will pay for and keep offering technologies at an ever-decreasing cost.”
The proposed rule requires annual fuel-economy increases of 5 percent for cars. Light trucks like pickups and sport-utility vehicles can raise fuel economy at 3.5 percent for the first five years the rule will be in effect. Then, unless regulators decide differently in a midterm review, trucks also would have to boost fuel economy by 5 percent a year.
Today’s draft detailed a proposal agreed to in July by President Barack Obama’s administration and automakers including GM, Ford Motor Co. (F), Honda Motor Co. and Toyota Motor Corp. (7203) Daimler AG (DAI) and Volkswagen AG (VOW) were among automakers that didn’t sign on and weren’t part of a ceremony in Washington where Obama touted the rule as part of his plan to reduce the use of imported oil in the U.S.