re: #708 avanti

It’s not a tax at all, it’s the estimated added cost of complying with CAFE and emission standards on cars starting in 4-8 years. The average cost of a car should actually go down because they won’t be building many expensive 4000-5000 pound SUV’s.
It’s also possible the cost will be less since we’ll have on national standards, not a half dozen state standards. Sadly, it does mean the end of cars as toys, no more hemi’s and the like, cars will be like toasters.

Morning avanti! I’m afraid we’ll have to agree to disagree. Government dictated increases in cost are, in reality, a tax on the product.

While I agree that the average cost of a car may go down if they stop building SUV’s, it hardly matters if the cars that are left go unsold.

I think it was P.J. O’Rourke who said something like “GM loses money on every car, but they plan to make it up in volume.”

And, while you’re correct that 4-6 years does run us out to 2016, it impacts the auto makers much earlier:

For 2016 — the final year new the rules will apply — the fleet fuel efficiency standard for all domestically sold passenger cars will be 39 mpg. It will be 30 mpg for all domestically sold light trucks and sport utility vehicles. The average of these two equals a passenger car and light truck fuel efficiency standard of 35.5 mpg. The current requirements are 27.5 mpg for cars and 23.1 mpg or trucks. The tighter standards will first affect the 2011 model year for cars and trucks.

Sorry you are wrong. IF they stop making SUV, the cost of the cars will go UP, WAY UP! GM made more money on SUV and trucks than anything else and that is what kept many car lines afloat. Once the SUV/Truck lines decrease or disappear, the price has no where to go but up.