CAFE Laws equalize that(Corporate Average Fuel Economy) - Saab General Bulletin Board - Saabnet.com
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CAFE Laws equalize that(Corporate Average Fuel Economy)
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Posted by Bill Homer [Email] (#3427) [Profile/Gallery] (more from Bill Homer) on Wed, 14 Aug 2013 08:51:02 Share Post by Email
In Reply to: All entery EVs dropped $5-7,000 in MSRP., Norm9-5, Wed, 14 Aug 2013 04:32:11
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If you read further into the article cited, there is an analyst's comment that GM is forced to sell more Volts so they can continue selling highly profitable (and gas-thirsty) pickups and SUVs. At the end of the day, the gasoline usage and resulting taxes on GM vehicles will probably equalize to total mileage divided by Mandated CAFE. Yes, this shifts the burden for road usage to heavier vehicles - which is probably about right, as heavier vehicles tear up roads more than light ones.

This article also states that "Bloomberg got an analyst to come up with a number for how much "research and development cost" is in each Volt: $9,000. This compares to about $1,200 in the "average automobile." I believe that when GM developed the Chevy small block V8 in the mid-1950s the R&D costs on those cars was also much higher than the previous generation of power plants. Almost five decades later they were still using essentially the same engine technology which permeated through 265/283/302/307/327/350/400 CID iterations. As the cost of R&D is spread out over more units, the cost per unit decreases.

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