BMW Pays CAFE Fines

[BigAls87Z28]

BMW coughs up 42 million dollars for violating US fuel economy caps
WASHINGTON (AFP) - BMW paid more than 42 million dollars in fines during the year that ended September 2003, for violating US corporate fuel efficiency rules, officials said.

The luxury German automaker incurred a fine of 14 million dollars for its 2002 model-year vehicles and another of 28 million dollars for 2001 model year vehicles.

It opted to pay the total in one fiscal year, which ended September 30, 2003, according to a spokesman for the National Highway Traffic Safety Administration (news - web sites).

Under Corporate Average Fuel Efficiency (CAFE) rules, automakers are required to keep the average fuel efficiency of their passenger car fleets to 11.7 kilometers per liter (27.5 miles per gallon), weighted by sales.

The corresponding truck target is 8.8 kilometers per liter (20.7 mpg), rising to 8.9 kilometers per liter (21 mpg) for 2005 model-year trucks and sport-utility vehicles.

But certain automakers routinely pay fines for exceeding those caps, although US and Asian companies have stayed within the government's limits.

BMW is among a handful of companies that have decided that paying the fines is part of the cost of doing business in the United States -- the world's largest automotive market, according to the trade magazine Automotive News.

http://news.yahoo.com/news?tmpl=story&u=/a...mw_040920171827

[pontiac is for me]

Let that be a lesson to BMW. How DARE they build performance cars that our friendly neighborhood federal bureaucrats don't approve of <_<

[banzai79]

27.5 and 21 MPG on average is hardly unreasonable. It's not like these requirements have been going up that fast either. I'll bet with Mini BMW pays a lot less in the coming years.

[Swahili]

I had no idea BMW weren't meeting CAFE. I was under the impression that BMW wouldn't have difficulty meeting those fuel efficiencies. Looks like I was wrong.

[ibechip]

That really gives an advantage to the larger automakers like GM, Honda and Toyota. They can produce their gas-guzzling sports cars as long as they still sell a lot of fuel sipping compacts.

[pontiac is for me]

That really gives an advantage to the larger automakers like GM, Honda and Toyota. They can produce their gas-guzzling sports cars as long as they still sell a lot of fuel sipping compacts.

And give GM credit: even the 400 hp Corvette can't really be called a gas guzzler: it gets something like 27 mph on the highway. Gotta love advanced technology!

Also, after Toyota cancels the Celica and MR2 and Honda cancels the NSX, I'm not aware that Honda and Toyota make ANY sports cars (except the S2000), let alone gas guzzling ones.

[pontiac is for me]

27.5 and 21 MPG on average is hardly unreasonable. It's not like these requirements have been going up that fast either.

But why not get rid of CAFE restrictions and just let the market decide? Free markets are like "economic" democracy: majority rule. If gasoline gets too expensive, people won't buy inefficient vehicles and the manufacturers will stop making them. Problem solved WITHOUT ridiculous government regulations.

[Gorf]

Originally posted by pontiac is for me@Sep 24 2004, 09:13 PM
But why not get rid of CAFE restrictions and just let the market decide? Free markets are like "economic" democracy: majority rule. If gasoline gets too expensive, people won't buy inefficient vehicles and the manufacturers will stop making them. Problem solved WITHOUT ridiculous government regulations.

Agreed.

[banzai79]

We had that, it was called the 60's, you know, when pollution and consumption got so bad we got our fun cars taken away from us? What a wonderful plan, let the auto industry set itself up for another crash-and-burn late 70's early 80's.

[AdmiralViscen]

Yes, the Arabs initiated their embargo because they were worried that we were buying and using too much gas.

[ChevyLaxMan]

Originally posted by pontiac is for me@Sep 24 2004, 09:09 PM

And give GM credit: even the 400 hp Corvette can't really be called a gas guzzler: it gets something like 27 mph on the highway. Gotta love advanced technology!

Also, after Toyota cancels the Celica and MR2 and Honda cancels the NSX, I'm not aware that Honda and Toyota make ANY sports cars (except the S2000), let alone gas guzzling ones.

Yeah, cause celica's are such gas guzzlers

[big swede]

Originally posted by pontiac is for me@Sep 24 2004, 09:13 PM

But why not get rid of CAFE restrictions and just let the market decide? Free markets are like "economic" democracy: majority rule. If gasoline gets too expensive, people won't buy inefficient vehicles and the manufacturers will stop making them. Problem solved WITHOUT ridiculous government regulations.

I agree.

How is it worse to drive a car that gets 26 mpg compared to an SUV that gets 22 mpg. Only the government could penalize the company making the 26mpg car.

[Smaart Aas Saabr]

Originally posted by AdmiralViscen@Sep 24 2004, 11:22 PM
Yes, the Arabs initiated their embargo because they were worried that we were buying and using too much gas.

Actually it was because we supported Israel during the Yom Kippur war, but you know...

[barcodedorganic]

and all we had to do is give them the capability to manufacture their own US currency to get them to drop their oil embargo's

[BigAls87Z28]

Dont get it all mixed up. You can place blame square on the oil companies. There were oil tankers, filled with gas, sitting off the coast of NJ. They waited till gas prices would go up, and then they would send in the gas.