Lutz says new CAFE standards will increase car price by $6k

Ten months ago, Bob Lutz said GM cars would be $5,000 more expensive if the Bush administration got its way with fuel standards by raising fuel economy 4% every year through 2017. Bush didn't get his way, but Congress did with its newly-signed-into-law energy bill that requires automakers have a fleet average of 35 MPG by 2020. According to Lutz, that's going to be even more expensive: "This is going to be a net average cost of $6,000 per vehicle, which will have to be passed onto the consumer."

Lutz said that the premium would actually range from $4,000 to $10,000, and that "it won't come all at once, because 35 mpg doesn't kick in all at once." No one said that saving the world was going to be cheap -- but $6,000 per vehicle? We look forward to figuring out which vehicles will bear the brunt of the plan. Add $10,000 to the price of a ZR-1 and no one's really going to notice. Add $6,000 to the price of a CTS and, depending on how much more expensive its competition gets, things could get interesting. Add $4,000 to the price of an Aveo and you've probably sent a fair number of buyers elsewhere.

[Source: Detroit News]

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