The National Highway Traffic Safety Administration (NHTSA) has now submitted its proposal for annual fuel economy increases to the White House, a document which proposes four years of fuel economy increases with the first starting in 2011. According to The Detroit News, the NHTSA proposal also includes a credit-trading system for carmakers where firms exceeding the standards could sell credits to other firms that can’t meet the deadlines.
Although the government claims the new legislation will help address the issue of soaring energy costs, there are many who believe the higher CAFE standards will add several thousand dollars to the price of every vehicle, including GM exec Bob Lutz who earlier stated it could add up to $6,000 to the cost of a new car.