New Fuel Economy Standard Will Hike Price of Future Cars
TORONTO, MONTREAL -- Vehicle prices will rise as Canadian auto makers spend billions on technology to meet new federal standards requiring them to improve fuel economy by an average of 22 per cent by 2020.
The costs per vehicle of new technologies should range from $3,000 (U.S.) to $7,000 for most auto makers, but as little as $2,000 for Honda Motor Co. Ltd. and Toyota Motor Corp., which lead in hybrid engine development, said Bill Pochiluk, president of Westchester, Pa.,-based AutomotiveCompass LLC, a firm that has studied how fuel economy will hit the U.S. market.
The key questions affecting what will happen to prices are how much of those costs auto makers are willing to pass on and their ability to spread the costs of developing clean diesel engines, electric vehicles and fuel-cell powered cars over as many vehicles as possible, industry officials and analysts said after Transport Minister Lawrence Cannon announced that Canada will match or exceed U.S. fuel standards.
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