Lutz Says CAFE 35 Will Increase Price of GM Cars By $6,000

Yesterday Bob Lutz said that the new CAFE 35 standards will have a major impact on the price of GM vehicles:

"We’ve done even more research and it’s going to be in the range of $4,000 to $10,000 with an average of about $6,000," Lutz said. "This is going to be a net average of cost of $6,000 per vehicle which will have to be passed onto the consumer. The good news is it won’t come all at once, because 35 mpg doesn’t kick in all at once."

As a result, he said, people will keep their old cars longer. He also said that the "worst thing" would be to stop building V-8 powered cars and trucks. More at Detroit News.