RE: Merc Hit With Efficiency Fine

RE: Merc Hit With Efficiency Fine

Friday 9th January 2009

Merc Hit With Efficiency Fine

Luxury car makers fined for fuel economy



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.

Author
Discussion

berkorich

Original Poster:

54 posts

227 months

Friday 9th January 2009
quotequote all
$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.....

elster

17,517 posts

210 months

Friday 9th January 2009
quotequote all
berkorich said:
$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.....
Yes because with 150 million people $30 million is going to make a huge impact on their purse.

Just shows how many big engined cars get sold in US by merc.

davido140

9,614 posts

226 months

Friday 9th January 2009
quotequote all
So this is for imported cars only, locally produced are exempt?

If this is the case I cant see how it makes the slightest bit of difference as the vast majority of cars in the US are american.

matt uk

17,684 posts

200 months

Friday 9th January 2009
quotequote all
The 35mpg average standard required - that's US MPG right?

So, that's 42.03mpg in our language.

Frimley111R

15,611 posts

234 months

Friday 9th January 2009
quotequote all
elster said:
berkorich said:
$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.....
Yes because with 150 million people $30 million is going to make a huge impact on their purse.

Just shows how many big engined cars get sold in US by merc.
What 150 million people?

btdk5

1,850 posts

190 months

Friday 9th January 2009
quotequote all
davido140 said:
So this is for imported cars only, locally produced are exempt?

If this is the case I cant see how it makes the slightest bit of difference as the vast majority of cars in the US are american.
It wont....in reality the US isnt at all bothered with preserving the environment over making profit.

davido140

9,614 posts

226 months

Friday 9th January 2009
quotequote all
btdk5 said:
davido140 said:
So this is for imported cars only, locally produced are exempt?

If this is the case I cant see how it makes the slightest bit of difference as the vast majority of cars in the US are american.
It wont....in reality the US isnt at all bothered with preserving the environment over making profit.
And quite rightly so! smile


H22K

182 posts

189 months

Friday 9th January 2009
quotequote all
Good god it's lucky there isn't any evidence of hypocricy on capitol hill.

No to Kyoto.

No to agreeing to set targets on climate change.

Yes to profiteering from setting ineffectual targets for companies to meet.

G eorge B ush
G ordon B rown

both have big wrinkly heads you'd like to punch, both have stupid voices and both have less of a grip on how to run a country than they do on reality.

Ok, I vote we find the factory that produces nigh on criminally incompetent world leaders, and we blow it up.

Argh wait I bet I can't say those names and that term in the same text on an internet forum because of course it'll flag up at GCHQ in between keeping a copy of my itmeised phone bill and checking who I send my emails to.

f*ck this.

Edited by H22K on Friday 9th January 12:09

snorkel sucker

2,662 posts

203 months

Friday 9th January 2009
quotequote all
i wonder what, comparatively, ferrari's 1.1m is compared to mercs fine when you consider volume of car sales? ferrari sell a lot less cars than merc so the fine "per car" would be a lot more - be interesting to see as a measure of just how far a company like ferrari have to go before they get close to the dizzy heights of 35mpg!

tomTVR

6,909 posts

241 months

Friday 9th January 2009
quotequote all
davido140 said:
So this is for imported cars only, locally produced are exempt?
Funny that!

elster

17,517 posts

210 months

Friday 9th January 2009
quotequote all
Frimley111R said:
elster said:
berkorich said:
$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.....
Yes because with 150 million people $30 million is going to make a huge impact on their purse.

Just shows how many big engined cars get sold in US by merc.
What 150 million people?
Sorry I only thought there was 150 million people in USA. Turns out it is about 300 million.

So 30 million really is a bit of a pointless exercise is what I am saying.

scovette

430 posts

208 months

Friday 9th January 2009
quotequote all
The rules apply to both domestic US and overseas manufacurers. (There's been a get out though in that the biggest SUVs are classified as trucks and are exempted.)

carl_w

9,171 posts

258 months

Friday 9th January 2009
quotequote all
TBH unless there are some other penalties, like reducing Merc's import quota, this more of a tax than a fine.

Gizmo!

18,150 posts

209 months

Friday 9th January 2009
quotequote all
Interesting that Porsche pay less than VW, when one of the reasons for them buying VW was supposed to be reducing their environmental average.

Ah well. I reckon M-B could probably GIVE AWAY a Smart car to everyone who buys an S-class. That would improve their average mpg enough to remove the fine and possibly cover the cost of the Smarts smile

tombstone

202 posts

213 months

Friday 9th January 2009
quotequote all
combine that fine with the amount they have to pay in rectification and warranty claims at the moment, suprised Merc haven't announced a major cut-back yet!! Either that, or US customers get better cars than we do!!!

dpbird90

5,535 posts

190 months

Friday 9th January 2009
quotequote all
Another reason to hate America, because with recent goings on, whatever happens over there soon happens here. And as it's been said 35 US MPG is 42 proper MPG, and who in their right mind would make all their cars do 42mpg? Stupid "green" arguments. America has the most money of any country in the world, why don't they just find a use for all this CO2 we are producing. We had a discussion in chemistry earlier; if anyone could make an engine that ran on CO2 then they would undoubtedly become the richest man or woman the world has ever seen, ever!

LOGiK

1,084 posts

188 months

Friday 9th January 2009
quotequote all
Since MB are not doing so well, they should refuse to pay the fine and threaten to withdraw from the US market completely thus creating unemployment and massive costs for the US.

Pretty sure they made a loss this year and their cars are piling up on US shores, complete withdrawl would certainly be an entertaining threat.

collateral

7,238 posts

218 months

Friday 9th January 2009
quotequote all
Does anyone know how the fines are calculated? A certain amount for every car under 40 mpg sold or something?

If so, the cars are probably already marked up to cover the fine anyhow

carl_w

9,171 posts

258 months

Friday 9th January 2009
quotequote all
dpbird90 said:
Another reason to hate America, because with recent goings on, whatever happens over there soon happens here. And as it's been said 35 US MPG is 42 proper MPG, and who in their right mind would make all their cars do 42mpg?
No, the average across the range weighted by sales (actually the mean of reciprocals) has to be 42mpg. At its simplest, as long as you sell a load of cars that do 50 mpg you can sell some that do 20.

Wikipedia tells you how it's calculated: http://en.wikipedia.org/wiki/CAFE

Edited by carl_w on Friday 9th January 14:08

collateral

7,238 posts

218 months

Friday 9th January 2009
quotequote all
Hardly surprising then. afaik they don't offer anything under a '300' sized engine over there, even in the SLK, and of course no diesels.