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Bob Lutz Predicts new Fuel Economy Regulations Will Boost Vehicle Prices by $5000

Quote :

The former vice chairman of GM's estimate is much higher than the government's prediction by 2025. "We're on the way to my $5,000," Lutz said during his keynote address at SAE World Congress at Cobo Center in Detroit on Thursday. "If the government says $1,800, it'll probably be about double that by the time the cars hit the road."

Finalized in 2012, the new fuel economy rules 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 car will rise $1,726, according to the Obama administration.

Detroit News

I'm not happy about increased pricing but I don't put much value in Lutz. He's the putz currently pushing $80k electric-battery powered pickups.

I agree with Diseasel. Plus I wouldn't be surprised if the gov puts a tax break of whatever the higher cost is to offset it and help it compete.

There's some merit to it. As all the cheap tricks have been done, belly pans, scoops, splitters, air dams, etc.

To move the bar up another 2MPG and beyond is going to be expensive.

Hell look were were are now with the cost of a truck today compared to 10 years ago. $7k difference easy, now a good portion of this inflation, but the fact remains to the extra increase it will be costly.

Government is pushing an agenda the business side doesn't want, cause its putting high margin vehicles out of the range of today's median incomes. Consumer lose, business loses, government? Well that's government, they know better what you need than you do. They don't care what it costs as that's evident in their everyday practice.

I hear you. Hopefully there's some new revolutionary technology working it's way though.

And then there's some fluff in pickup prices as pickup profit margins have been relatively high for awhile. I never thought about it but wonder if manufacturers are taking advantage of a male's higher earning potential?