Friday 9th January 2009

Merc Hit With Efficiency Fine

Luxury car makers fined for fuel economy

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US authorities have released figures on fines levied against import manufacturers who fail to meet federal fuel efficiency standards – and Mercedes has once again topped the bill with an eye-watering $28.9 million charge.

Last year the Corporate Average Fuel Economy – or CAFE – fines (levied for ‘transgressions’ in the 2007 model year) totalled more than $37 million for six carmakers. VW forked out $4.5 million, Porsche and Maserati paid $1.2 million, while Ferrari coughed up $1.1 million.

Merc’s bust was the second largest CAFE fine on record, being narrowly beaten by the $30.3 million the company had to pay in 2007 for vehicles sold in 2006.

While the CAFE economy standards hit luxury carmakers hard, other importers like Honda are believed to be sitting on a healthy stack of credits as they already beat the mileage targets.

However unpopular the fines are, the CAFE system is reckoned to be a useful force in moving the industry in a ‘greener’ direction – with the 35mpg average standard required by 2020 pushing even luxury makers towards hybrid and electric vehicles.

[berkorich]

$30m a year - a fraction of the cost to develop more energy efficient technologies. Let me guess, the authorities know this and are just dressing up environmentalism to swell their coffers. Perish the thought.....