More details emerge on new fuel economy bill, no Porsche rule
Some further details have emerged about the compromise fuel economy bill that hammered out late Friday night. As we know they will continue to calculate averages for cars and trucks separately as well as calculating the separate averages for import and domestic fleets. The averages are sales weighted so selling more low mileage vehicles pulls down the average. What wasn't apparent before is that while the credits for flex-fuel vehicles (1.2 mpg per vehicle) are retained through 2014, they are due to be phased out after that time. Of course that is likely to change as these sorts of things usually do and we will probably be stuck with flex-fuel credits indefinitely.
Congressional leaders evidently also decided that Porsche is just like other car companies (although much more profitable!). The rule in the original Senate bill that would have classified low volume manufacturers as those that have a US market share of less than 0.4 percent has been dropped. That would have meant companies that sell less than about 64,000 cars (at current sales rates) would be exempt from paying fines for not meeting the standard. Porsche, which sells about 35,000 vehicles in the US out of about 100,000 worldwide had wanted this change retained in the final bill. The other automakers have declared that they will stop fighting and support passage of the bill as it now stands.
Reader Comments (Page 1 of 1)
Alex 12:51PM (12/02/2007)
I'm glad they left in the flex fuel provision. I think most of us would agree that corn ethanol is a bad idea in the long run, but if any of the environmentally better alternatives do manage to demonstrate economic viability, I wouldn't want them hampered by a lack of cars to put their ethanol in.
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Wildgoosechase 1:32PM (12/02/2007)
While Porsche may be dissapointed they didn't keep their exempion it won't hurt them too much. By the time the ink is dry Porsche will have taken control of VW and will be able to include them in their CAFE.
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GoodCheer 9:44AM (12/03/2007)
"As we know they will continue to calculate averages for cars and trucks separately as well as calculating the separate averages for import and domestic fleets."
I'm still not clear on what this means... Does it mean that each manufacturer have to calculate 4 numbers,
one for cars built (assembled?) in the US,
one for cars built (assembled?) outside the US,
one for trucks built (assembled?) in the US,
one for trucks built (assembled?) outside the US
...and each of the first two will have to be above the car number (35), and each of the last two will have to be above the truck number?
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gsolman6 1:31PM (12/03/2007)
"I'm glad they left in the flex fuel provision. I think most of us would agree that corn ethanol is a bad idea in the long run, but if any of the environmentally better alternatives do manage to demonstrate economic viability, I wouldn't want them hampered by a lack of cars to put their ethanol in."
The thing is that taxpayers are already supporting, i.e. subsidizing, ethanol production to the tune of $0.51/gallon. Do we need more incentives than that?
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mus302 3:52AM (12/05/2007)
I am pretty sure that the current flex fuel vehicle credit is at a max of .9 mpg. It was 1.2 mpg until the program was extended in 2004 and runs through the 2008 MY unless it is extended again.
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