CNN Says Gas Prices Are the Key to Fuel Economy

Publisher's Note: We believe that no matter what price gasoline is, it is still the wrong fuel for our future.

Washington DC May 21, 2009; The AIADA newsletter reported that new fuel economy rules announced by President Obama Tuesday have already gained support from major automakers, but the challenge will be getting consumers to play along, especially if gas prices remain relatively low.

According to CNN Money, the Obama administration estimates these rules will add about $600 to the cost of a car. That's on top of an estimated $700 added by changes to fuel economy rules that have already been enacted.

Also, with fuel prices still low, consumers may want larger vehicles, but these will never be as efficient as small cars. Without soaring gas prices pushing drivers to conserve, it will be difficult for makers of larger vehicles to meet the administration's efficiency goals. However, as automakers produce vehicles that meet standards, consumers can expect to see more six-speed, seven-speed, and even eight-speed transmissions and more use of smaller, turbocharged engines replacing bigger V-8 engines.

Technologies like these will allow automakers to quickly raise fuel economy without having to design whole new vehicles, which will add to the cost of vehicles.

In the end, experts say in order to truly change consumer behavior, fuel prices must be increased.

To read CNN Money's full account of the new fuel economy standards and their impact on consumer behavior, click here.