Who wants gasoline prices to rise?

Admittedly, I’ve given away the answer because of  the image to the left of this post, but, let me explain their rationale.

The Department of Transportation, and the EPA mandate that each car manufacturer meet “fleet standards” for fuel economy.  In other words, any car manufacturer, in 2010, had to make sure that the average  miles per gallon of all cars it manufactured was 22.5.  So, as the government increases the fleet standard, manufacturers, such as GM, must increase the production of, let’s say, the fuel efficient Chevy Aveo to make up for the gas guzzling Chevy Tahoe.  But, at the end of the year, GM traditionally is left with a lot of Chevy Aveo’s.  Many consumers don’t want them.

For some, the smaller fuel efficient cars are dangerous.  For others, the family of 6 won’t fit into them, much less the luggage that goes along with the family of 6’s trip to grandmother’s house.

Here’s the problem.

Auto makers are pushing to link federal fuel-economy and emissions targets to the price of gasoline, saying consumers won’t pay enough for fuel-efficient cars to make them profitable if gas prices aren’t high. [emphasis supplied]

And,

Auto makers say that if gas prices don’t keep rising, they could be forced to spend billions on more efficient cars that consumers won’t buy.

It gets worse for the Chevy Volt.  A recent survey by Deloitte Touche showed,

that U.S. fuel prices would have to rise to $5 a gallon to reach an “inflection point,” with 78% of respondents saying they would consider buying an electric vehicle at that point.

So far this year, we are not at $5 a gallon.  So far this year, of all the  vehicles sold in this country, only 3.5% are hybrids.

Let me leave you with this:

The auto manufacturers group has pointed to industry research showing that fuel-mileage and emissions proposals currently under discussion could raise the cost of a vehicle by as much as $6,400 by 2025, a premium that it says consumers would only partly recover through gas savings over the life of the vehicle. [emphasis supplied]

Interesting…

Posted in ,

SoundOffSister

The Sound Off Sister was an Assistant United States Attorney for the Southern District of Florida, and special trial attorney for the Department of Justice, Criminal Division; a partner in the Florida law firm of Shutts & Bowen, and an adjunct professor at the University of Miami, School of Law. The Sound Off Sister offers frequent commentary concerning legislation making its way through Congress, including the health reform legislation passed in early 2010.

26 Comments

  1. Don Lombardo on April 26, 2011 at 11:20 am

    The same wackos (America haters)?that gave us ethanol.



  2. Dimsdale on April 26, 2011 at 11:50 am

    If I can’t afford a $2-4 increase in a gallon of gas, what makes these libtards think that I can swing $30-40 large for an “economical” Chevy Volt, or Prius??? And don’t forget all the government taxes associated with this purchase, the insurance and outrageous repair fees, as you will only be able to get one of these turds fixed at the stealer, I mean, dealer!? We are talking net loss here.
    ?
    If we were smart (vs. progressive), we would invest in Diesel technology, as Europe has (and at Euro emissions levels), and cut out consumption by nearly half, with no new required infrastructure or expensive technologies.? And this, driving the same style cars we prefer, instead of cars that look like women’s purses with wheels (Prius)!
    ?
    Lastly, smaller cars are less safe.? Sorry. ? It is simply physics. ? As one prominent bumper sticker on an SUV said, “Your car…. is my crumple zone!”



    • BEA on April 26, 2011 at 11:58 am

      Ahaha Dims!!! Great minds…



    • mynoc3 on April 26, 2011 at 12:38 pm

      I agree with the cost analysis of the “economical” cars.? Fruthermore, where would we get this “free” electricity to power these things?? As I understand it, the utility prices keep going up for various reasons also.? All I see is a more expensive vehicle with a more expensive utility bill.



    • Dimsdale on April 26, 2011 at 3:56 pm

      And lest we forget, following the theme of “it’s their money”, there are several states considering raising fuel taxes, or worse, taxing your car based on the number of miles driven, because the gas tax “take” is being reduced due to the use of more economical cars.?? Tax a behavior to slow/stop it, but don’t increase the taxes because? you are slowing/stopping the activity!



  3. BEA on April 26, 2011 at 11:53 am

    First of all, how on earth would?I fit the bazillion kids I’m always shlepping around in that little sardine box???
    Secondly, my almost 18 yo daughter will be getting her driver’s license this summer…no way I’m putting her in?one of those things.
    Thirdly, how are we supposed to afford a new “efficient” car if we can’t afford $4.30 gas???

    It’s all manipulation…someone has an agenda…it will be crammed down our throats whether we want it or not.



  4. johnboy111 on April 26, 2011 at 8:12 pm

    and once again don’t forget the guy[or gal] that has to use a TRUCK DO THEIR WORK..sorry barry i can’t hall my stuff in a clown car;even if it only costs 40k



    • NH-Jim on April 28, 2011 at 10:55 am

      Exactly, ask any building contractor, plumber, HVAC contractor, general contractor, landscaper, roofer, paver, concrete contractor, electrician, cabinet maker, carpenter, insulation contractor, oil delivery, lumber company, window and siding contractor…
      Shall I keep going?? All these businesses listed are SMALL businesses and they are taking a huge HIT!? And, this administration and the liberals do not give one DAMN bit of concern.? They are out to destroy you and me.? Time for CHANGE alright!



  5. ricbee on April 27, 2011 at 9:08 am

    It gets even worse when a consumer can actually figure out that the cost of the electricity & loss of convenience does not enhance his life or the environment. Probably them darn “home schoolers”.



  6. sammy22 on April 27, 2011 at 5:39 pm

    Who wants higher gasoline prices? Make it easy: ask the gasoline refiners.



  7. sammy22 on April 27, 2011 at 11:54 pm

    But of course, the Government is the enemy and the gasoline refiners are the friends.



    • Dimsdale on April 28, 2011 at 10:17 am

      Well, the refiners provide a service/product that is tangible, and you can buy voluntarily.? The gov’t confiscates money from that business and does God knows what with it, without your blessings.? Gov’t restrictions on building refineries drive the price of fuel up every summer, when maintenance is being done, or hurricanes are pending, and the maintenance is even more necessary since we are running at nearly maximum capacity, something that could be avoided if we had more refineries.?? Now we have cancelled drilling in the Arctic, impeded drilling everywhere else, and we are supposed to believe that they are doing this in our best interests?? To paraphrase Barnum, “there’s a liberal born every minute”.
      ?
      Gov’t takes MORE money from a gallon of gas than the refineries do (tax gouging?)!?? Overbearing government is certainly the enemy.? The enemy of a free state at minimum.? And our socialist president wants it to become even more powerful and overbearing, in the model of many European states (you know, the ones proposing severe austerity programs right now?? The ones where riots are occurring because their citizens, raised at the teat of gov’t, are being told that the teat has dried up?).?? He, and his acolytes, WANT higher fuel prices, even though they will hurt the people they claim to care most about: the poor.
      ?
      This country did not become great, or the goal of nearly every person that simply wants the opportunity to succeed, on the backs of government; government became huge and overbearing on the backs of successful businesses and entrepreneurs.



  8. sammy22 on April 28, 2011 at 11:58 am

    I hope you feel better after the rant above. As to the last paragraph, you might consider that government has also give successful businessmen and entrepreneurs a lot of “breaks” not available to common folk. And, many successful businesses and entrepreneurs have achieved their success on the backs of common folk (or have you conveniently forgotten American history?).



    • Dimsdale on April 28, 2011 at 1:44 pm

      LOL!? If you think that was a rant, you must hang around with some real lightweights!? 😉
      ?
      I see: by “success on the backs of common folk”, you mean they gave them jobs.? Gov’t gives “breaks” to businesses in order to influence what they do, much as tax deductions do for? you and I.? Also, many of these breaks are more the result of “donations” to the campaign funds of pols, providing another source of inequity.?? Would the “common folk” be better served by being good little proles of the state?? I think not.
      ?
      As a huge proponent of a flat tax and complete removal of the deduction/social engineering method currently employed, I would be the last person to think that “breaks” should be given to anyone, let alone businesses.? Businesses (and people) should make it on their merits, not handouts and subsidies.? It would be to the betterment of society as a whole.
      ?
      Feel free to address the other paragraphs in my preceding post.



  9. sammy22 on April 28, 2011 at 6:33 pm

    Why bother. The name of your game is to change the subject on any responses or give them a “nice” twist. Keep hoping for flat tax, that will fix everything.



    • Dimsdale on April 28, 2011 at 7:18 pm

      Sorry you think that way.? I addressed all of your points in order.



  10. ctrefugee on April 29, 2011 at 10:22 am

    I remember an article on the demise of the trolley in Ct. GM & Goodyear was behind that too. Just think if our towns were still connected by them still instead of a bus system between Hartford & New Britain at the cost of $500 + million and all the other “public transport systems” they want to build. I guess the song was right “All our life’s a circle “



    • Dimsdale on April 29, 2011 at 2:36 pm

      They say you could take a series of trollies from Boston to NYC, but I imagine it would have been quite slow.



  11. winnie888 on April 29, 2011 at 1:59 pm

    Started on the sticky note campaign today @ the truck stop in Willington right off 84 (regular: $4.199/gallon).? I tossed my little sticky pad in my purse last night because I knew I needed gas today.? I only put $10 in — just enough to get me to exit 1 in Sturbridge where I filled up for $3.89/gallon.? Then, because I’m so aggravated with this state and the tax increases that are just around the corner here, I proceeded to get the few items I needed @ the Walmart on Rte. 20 in Southbridge.
    Honestly, if I could afford it, I would look into buying a Prius, however I have to worry about rent and food over a car payment.? Obama and the gas prices are crippling consumers.



    • Dimsdale on April 29, 2011 at 2:35 pm

      You should see all the CT plates in Southwick and W. Springfield gas stations!?? And as you say, since the supermarket and pharmacies are right there, they shop there as well.? Even less money for CT!!? Kind of a Laffer curve in practice!



  12. winnie888 on April 29, 2011 at 2:01 pm

    Whoops…accidentally said “3.89/gallon”…actually paid $3.85.? EVEN BETTER, RIGHT?? 😀
    ?



  13. sammy22 on April 29, 2011 at 10:55 pm

    Anybody going to suggest to drive to NJ, where gas is cheaper? But not California where it’s over $4/gallon



    • TomL on April 30, 2011 at 2:16 pm

      When you live where Winnie and I do going to Sturbridge is like going to the corner store.? I even buy my bottled water in Sturbridge because there’s no deposit and then I?redeem the bottles in CT as a protest.



  14. sammy22 on April 30, 2011 at 3:33 pm

    Some protest, TomL. Or should it be called something else?



    • Dimsdale on May 2, 2011 at 1:45 pm

      Every great journey begins with but a single step….



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