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Lobbying Adds to Car Cost

Trying to prevent Congress from raising fuel economy requirements is costing new vehicle owners a few dollars each.

Lobbying fees (primarily aimed at fighting new fuel economy standards) from the top auto companies went up 14 percent during the first half of the year, according to a survey done by the Detroit Free Press and quoted here.

GM spent the most on lobbying at $7.8 million. But by comparing Big Auto's lobbying expenses with their sales, we can see just how much money consumers pay per car for auto companies to fight a change to more sustainable transportation.

For each vehicle they are selling, the auto companies are spending between 2 to 4 dollars to keep the status quo in fuel economy.

Company Lobby Dollars Vehicles Sold (MM) Cost Per Vehicle
General Motors $7.8 million 1.92 $4.06
DaimlerChrysler $3.7 million 1.11 $3.33
Ford 4.2 1.37 $3.06
Toyota 2.7 1.37 $2.03

Yes, this isn't a direct comparison, but the money isn't likely coming for executives pockets or from shareholders, so consumers are footing the bill. Or another way of looking at it -- the collective amount of lobbying money ($31.2 million) could buy about 15 million gallons of gasoline.

Ford continues to fight legislation by holding rallies for legislation that would raise fuel economy standards (CAFE) to 35 miles per gallon in a mere 25 years. Lobbying is part of our free enterprise system, so it's cost needs to be weighed too.

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