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Old 01-13-2008, 09:31 PM   #1 (permalink)
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News: GM's Lutz says car prices to go up $6k to meet CAFE targets

Via AutoblogGreen...

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

"
This is going to be a net average cost of $6,000 per vehicle, which will have to be passed onto the consumer."

Quote:
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."
Perhaps Lutz's plan is that with every Escalade sold, GM throws in five GM-badged Tata Nanos ($10k for the lot, you see), to keep the company's total fleet average within the new limits.

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Old 01-13-2008, 09:34 PM   #2 (permalink)
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Did I say the other day this exactly what was going to happen!? Didn't I? GM must think we're all completely devoid of intelligent thought...

But I guess when GM's cars all go up 6k and Honda and Toyota are still doing more of the same it'll solidify the death of detroit.
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Old 01-13-2008, 09:36 PM   #3 (permalink)
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This is called the high ball. If buyers go for it, then he asked too little.
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Old 01-13-2008, 10:19 PM   #4 (permalink)
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Ha Ha, he's trying to shift the blame and consumer anger onto government and away from Detroit. Sad thing is, a lot of people will buy it.
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Old 01-14-2008, 08:36 AM   #5 (permalink)
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I think he is probably being taken out of context - he means that it costs an extra $6k to keep producing the average porky, barn door-esque mobile fashion statement and improve it to help meet the fleet average. Which it would.

I wonder whose going to be buying all these new vehicles in a recession?
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Old 01-14-2008, 10:46 AM   #6 (permalink)
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SUVs have always been a favorite of the carmakers because of their relatively high profit margins. GM is just trying to reset consumers' expectations since CAFE will be leveling part of the playing field. Like big oil, GM's goal would be to apply costs accross all consumers so that their favorite customers can keep making poor vehicle choices.
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Old 01-14-2008, 11:08 AM   #7 (permalink)
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Quote:
Originally Posted by SVOboy View Post
Did I say the other day this exactly what was going to happen!? Didn't I? GM must think we're all completely devoid of intelligent thought...
My predictions....

GM (and a few other monstrous vehicle mfr's) raises prices.... Honda, Toyota, Hyundai, Mitsubishi, Mazda, VW, Nissan, Smart etc. lower or keep status quo (with respect to vehicle prices + inflation). <--basically what you eluded to

It's as if GM thinks saying this crap will change the standard. It's funny how the American mfr's are complaining while others are explaining how they're rising to the challenge.... But that said - and I think this is very much so related to how we got to the monstrous vehicle age - Here's an interesting read on money.
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Old 01-19-2008, 06:51 PM   #8 (permalink)
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I had some pointed things to say about this over on Jalopnik. He's full of it, he knows it, we know it, and probably the only ones completely stupid enough to buy any portion of it are in government.

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