At the Geneva Motor Show this week Mercedes-Benz has been showing a slew of vehicles with assorted fuel saving technologies. The collection has included diesels, hybrids, aerodynamic improvements, low rolling resistance tires and more. While GM Vice Chairman Bob Lutz repeatedly complained that new U.S. fuel economy regulations would add $5,000-6,000 to the cost of new vehicles, Daimler is taking a different approach. The Germans haven't really discussed what the changes would cost. Instead they are simply saying that the new technology would be profit neutral. They plan to charge only what the changes actually cost as a premium. They don't intend to lose profits on fuel economy improvements, but they also don't plan to add any extra margin. So what does this really mean? Don't expect Mercedes to subsidize the cost of your new German hybrid.
[Source: Automotive News - Sub. req'd]

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