Gas prices: The key to fuel economy

As President Obama announces tough new fuel economy rules, experts wonder if low gas prices will keep consumers away from efficient new vehicles.

NEW YORK (CNNMoney.com) — 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.

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. All this may keep consumers from buying a new car, some say.

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.

“You could achieve the standards today with ultralight, really small cars,” said Jeremy Anwl, chief executive of the automotive Web site Edmunds.com, “but how many people are really going to buy those?”

CNN