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]
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]