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Albuquerque Journal - 2007-10-31

Higher Vehicle Prices Under Clean Car Proposal Would Be Offset by Fuel Efficiency (new window)

    Drivers who buy a new car would save about $43 a month in gas under the proposed "Clean Car" air-quality program, according to a report issued Tuesday by Environment New Mexico.
    The nonprofit group's report offers support for the "Clean Car" proposal, which would impose strict low-emission standards on new cars and trucks, starting with 2011 models.
    New Mexico's state and local air-quality agencies will consider the proposed regulation on Nov. 26.
    The report says the cost of a new vehicle might go up by $1,000 to meet the proposed pollution standard. That could add about $20 to the monthly payment on a car loan, according to Environment New Mexico.
    The vehicle, however, would be more fuel-efficient, saving $43 in gas. The savings on gas, based on a price of $3 a gallon, would ultimately offset the increased cost of the car, the report said.
    The 46-page report was released Tuesday in a news conference at City Hall with Mayor Martin Chávez.
    Critics of the measure, including car manufacturers, say it could boost car prices, reduce the selection of vehicles sold in New Mexico and spur some people to buy cars in other states.
    Charles Henson of the New Mexico Automotive Dealers Association said it's difficult to predict how the regulation would impact consumers, given the economic assumptions that have to be made about the cost of gas, the cost of production and other factors.
    "I don't think they can prognosticate that far out on this issue and come up with any meaningful numbers," Henson said in an interview. " ... Their report probably shows exactly what they want it to show."