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GOVERNMENT REGULATIONS MAY BE SELF-DEFEATING BY HURTING NEW CAR SALES

GOVERNMENT REGULATIONS MAY BE SELF-DEFEATING BY HURTING NEW CAR SALES
 ANN ARBOR, Mich., Jan. 21 /PRNewswire/ -- The forthcoming tidal wave of automotive government regulations will drive up prices on new vehicles and drive down new-vehicle sales, making those mandates less effective. This is the conclusion of a strategic analysis recently completed by the Automotive Consulting Group, Inc. (ACG), an Ann Arbor- based research firm.
 Emissions, safety and fuel economy technology needed to meet all regulations by 1996 model year will raise sticker prices between $2,250 and $4,500, in addition to the $2,582 which now accounts for regulations in the price of a new car, says the study. ACG predicts that under a best-case scenario, old and new regulations could cost the consumer a total average of $5,000 in the next five years, and will result in more consumers being priced out of the new-car market.
 "Between 1980 and 1990 the number of 11-plus-year-old vehicles on the road increased from 24 million to over 50 million, a 105-percent increase," said Dennis Virag, ACG's managing director. "Solutions to fuel economy and emissions problems depend on getting those older, higher-polluting cars off the road. But if no one can afford new cars, then the problems grow."
 By analyzing the cost implications of the Clean Air Act and the California Air Resources Board (CARB) mandates, the study determines the practicality/feasibility of new technology being developed for the Transitional Low Emission Vehicle (TLEV) and assesses the impact that emission regulations may have on new-vehicle sales and on the environment.
 "We want people to realize that the standards coming out of Washington and Sacramento are actually going to have a detrimental net effect on air quality and fuel economy," said Virag.
 This is the second in a series of reports dealing with various aspects of the Clean Air Act and CARB regulations. For more information on the regulatory series, or to purchase a copy of the report, interested parties are directed to contact Dennis Virag, managing director, the Automotive Consulting Group, Inc., 1000 Victors Way, Suite 300, Ann Arbor, MI 48108, or call 313-998-5550.
 -0- 1/21/92
 /CONTACT: Dennis Virag of Automotive Consulting Group, Inc., 313-998-5550/ CO: Automotive Consulting Group, Inc. ST: Michigan, California, District of Columbia IN: AUT SU:


SB -- DE004 -- 1707 01/21/92 10:21 EST
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Date:Jan 21, 1992
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