Fuel Economy and the Luxury Car

BY Steve | No Comments

 


You’d think by the year 2009 auto companies would be on board with at least
the principle tenements of the green movement and yet, in spite of consumer
demand, ‘The Big Three’ have essentially crippled an already destabilized
economy by continuing to produce gas-guzzlers and energy wasters. But while all
the furor and scrutiny is being laid square on the North American
manufacturers, another major player is slipping under the radar. But first, a
little context.

By federal mandate, automakers have been required to produce fuel-efficient
vehicles, in accordance with the Corporate Average Fuel Economy (CAFE) fuel
efficiency standards. Failing to comply results in a rather substantial fine.
2007′s champion of inadequacy was DailmerChrysler AG, who set the bar quite
high in earning a $30,357,635.50 fine. The follwing year, Mercedes-Benz, now
owned simply by Daimler AG, attempted to best itself recording a $28.9 million
fine. To give you an idea of what that means in relation to the rest of the
auto industry, the National Highway Traffic Safety Administration (NHTSA)
handed out $37 million dollars in fines for the entire industry that year.
So, of the 6 major auto manufacturers levied fines, Mercedes-Benz was by
far the most inefficient manufacturer and only $2 million shy of their all time
record.

So while you can lamblast ‘The Big Three’ for flying in private jets to
discuss how best to bail themselves out of self-imposed financial turmoil, it’s
not as though their wealthier competitors are besting them in the hard numbers
department. When one company accrues three-quarters of the ‘not good enough’
fines two years running, totalling nearly $60 million dollars, in a time of
financial crisis and environmental activism, it’s time to take a hard look in
the mirror.

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