According to GM, New Fuel Standards Could Raise Car Prices by $5,000?!

According to GM Vice President Bob Lutz, President Bush’s proposed fuel efficiency increases could raise car prices by as much as $5,000.

The Detroit News quoted the vice president at the New York Auto Show today.

The Bush administration wants to reduce the U.S. gas consumption by 20% a year by 2017. 5% of the 20% will come from improved fuel efficiency standards for cars and trucks.  The initiative could cost as much as $117 billion between 2010 and 2017, with over $40 billion coming from GM alone. This cost would then be passed onto the consumer, which would raise the overall prices of the vehicles.

Lutz was quoted as stating that it is an "unaffordable solution" and that the "technology does not come free" since the initiative would mean the production of more hybrids and other more expensive means. Lutz feels that the better solution is to put more emphasis on the availability of ethanol-based fuels, such as E85.

Seems fishy to me. It sounds like someone is whining…

Full Story: Detroit News