When Barack Obama officially announces new fuel economy standards today, he’s expected to be surrounded by auto industry executives.
Despite their support on the podium, there’s grumbling from the auto industry that the proposed 39 mpg for cars and 30 mpg for light trucks will be costly.
The Wall Street Journal calls the change in standards “among the most expensive rule makings in U.S. history.” Last year the Transportation Department said getting autos to 31.6 mpg by 2015 would cost the industry $46.7 billion. Obama wants them to be at 35.5 mpg by 2016.
The Washington Post citing a senior administration official says the average cost of a car will raise by “$1,300, $600 of which could be attributed to the rules being announced today.”
Of course, this comes at time when the auto industry is struggling and bankruptcy and blah blah blah. The auto industry will always make up reasons why it can’t get its cars to run longer on less gas. It’s pathetic.
The Toyota Prius started in 1997, and was estimated to be losing $10,000 per car. Now, the company says it will make thousands of dollars on each car sold. And the car only costs $20,000 or so.
If the rest of the automakers hadn’t sat around and waited for the government to force their hand on fuel standards, then short term cost issues wouldn’t be a problem.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.