Huge fine for Mercedes-Benz for poor fuel efficiency
Every year, automakers that fail to meet the federally-mandated CAFE fuel efficiency standards receive fines in proportion to their gas-guzzling crimes. Last year, DaimlerChrysler set a record with a fine of $30,357,635.50, and that figure is proving tough to beat. Still, Mercedes-Benz, which made up half of the failed marriage that was DaimlerChrysler, tried its best to top itself by recording a whopping $28.9 million fine for cars produced in 2007, again taking the gold medal. Come on, guys, we know you can do better ... or worse, or whatever.Other manufacturers that fared poorly in CAFE reporting include Volkswagen, which was hit with a $4.5 million fine (much of which was due to the Touareg light truck), Porsche and Maserati, which tied with $1.2 million fines each, and Ferrari, which had $1.1 million in CAFE fines pulled from the clutches of its purse strings.
These huge fines are exactly why automakers are worried about the impending increase in fuel economy requirements. Those companies that managed to stay under the requirements are also going to need to know as soon as possible what mileage requirements are going to be in the coming years if they have any hope of staying in the clear. It looks like that will not happen quickly.
[Source: Detroit Free Press]
Reader Comments (Page 1 of 3)
Tim 5:30PM (1/08/2009)
Where are these fines going?
Oh, I know...
Bomb, Bomb, Bomb
Bomb Bomb Iraq
While we're there
We'll bomb Iran...
(let's ALL sing) Change?
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UH2L 5:35PM (1/08/2009)
Funny how most environmentalists, (of which I am one), or the media don't talk about the fact that Ford and GM have never paid CAFE penalties but many of the European companies have. But then, they are the victim of only selling upper end vehicles. Herein lies the problem with CAFE.
But then if you look at individual models, In addition to Mercedes, any of the Euro cars use more gas than some mid-sized American SUVs, but that never gets talked about. For instance, those 2.7 L V6 Audio A6 All-Road wagons were very inefficient. The BMW X5 V8 was a total pig, not sure if it has improved of late. The X6 is a wasteful vehicle. VW's Touareg is innefficient for its size. That is not exactly being green.
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UH2L 5:36PM (1/08/2009)
Sorry for the poor writing style. Way too many "but then"'s.
Susan Kraemer 6:03PM (1/08/2009)
Tim,
In the CAFE legislation I remember there was a section on how the fines must be allocated - to fund renewable auto technologies like the 25 billion for advanced auto technologies that helped the xpcar (and that GM tried to get access to for bailout)
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gorr 6:18PM (1/08/2009)
They insult the human race by promoting gasoline-state electricity and letting down hydrogen. They already have hydrogen technology but accepted political pressure to continue the toxic monopoly of petrol. They lost billions in hydrogen researchs, hydrogen prototyping and testing and when they said it was perfect then the politicians driven by big-oil got a nerve depression and summed Gm to fing something else instead. By doing this limp car big oil keep the rest of the cars, trucks, ships, airplanes, electrical generation, lighters, lawn mower, out-board and inboard small boats, go-karts, motorcycles, farm machineries, antrax, missiles, tanks, trains, etc.
It cost billions to change gasoline cars to hybrid-gasoline cars because you have to change everything. If you put hydrogen gas instead you don't necessarilly have to change the car architecture because hydrogen can fit actual ice gasoline cars without too much cost to make the conversion. They can sell malibus and cobalt and hummers next week with hydrogen tanks.
This is a dead compagny that will be forgotten very soon because any business with high-financial circles is change overnight because they invest only in politically-protected market.
This site is responsable of the actual energy-war-financial-technology-religious-social-tax-boringness-limp cars sale-housing crisis that plague actually the planet. It was intended before long long time ago that we will trade for fun the car that i intent to buy here on this site. I reconize the folks that stand here regurlarly and the operators of this site that i met 500 years ago in big prayers. It was agreed that everybody will speak their names and bid for what they want. By cheating and having sold to some biggest bidders(world banks of nowhere) my personnal bids, the entire world is about to collapse in massive pain, till i start another planet again for the sixth time.. It's me that have the best tastes for a car that move fast without pollution and fuel cost.
Nobody, except my limp dodge neon 2005 5 speeds, will make me buy old fart gasoline technology again. This stuff is liable to speculation, taxation and most of all give 33% less power then hydrogen.
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Chris M 11:36PM (1/08/2009)
No, Gorr, the world isn't going to collapse just because you can't buy a hydrogen powered Corvette, the world doesn't revolve around you, and you don't have the power to "start another planet again" - if you had that kind of power, you could easily make your own H2 fueled 'Vette.
How many times do I have to tell you, Autoblog Green is not a car dealer, nor does it hold auctions, so your "bids" are nothing but figments of your excessively vivid imagination.
Gorr, have you ever read any of your posts? Has it ever occurred to you, that to everyone else here reading your posts, you sound like a raving lunatic?
ernest 12:14AM (1/11/2009)
Im sorry but I got a headache just trying to read this. please proof read your work before posting.
Sears Poncho 3:34AM (1/11/2009)
Yeah Gorr, You started off with a very constructive idea, but you totaly lost me after the first paragraph.... You know, right after the meth stole your brain and passed it to a troop of performing orangutans.
Charles 8:06PM (1/28/2009)
You know how hydrogen is currently produced, gorr? A process called methane reformation, in which natural gas is taken, heated to a very high temperature, and broken into hydrogen gas and carbon monoxide. The carbon monoxide can be further processed with water to yield more hydrogen and carbon dioxide. Guess what? This is all extremely wasteful (due to heating requirements), still emits loads of CO2, and is still 100% reliant on fossil fuels!
Once we have an energy infrastructure built on renewables and other clean sources of power, then let's talk production of hydrogen via the electrolysis of water. Don't advocate for a solution you know nothing about.
noz 6:42PM (1/08/2009)
They should keep fining the crap out of MB, BMW, and the rest of the German overpriced, overweight yuppie crap all the idiots over at Autoblog are going gaga over on a daily basis.
Nothing but dk extensions.
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gorr 8:14PM (1/08/2009)
Oooops, wrong place, my post was intended for the other article on the volt-mule testing.
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Chris M 11:38PM (1/08/2009)
Makes no difference, it makes just as much sense here as it would there, that is, no sense at all.
Jared 9:24AM (1/09/2009)
Huge fine? Jeremy, you really didn't think about this at all before you posted this story, did you?
Let's do just a little bit of math to put this in perspective. Mercedes sold 225,000 cars in the US in 2008. $30,000,000 is only $133 per car. Huge? No, not huge. Minuscule in the car business.
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Colin 9:27AM (1/09/2009)
As someone else stated... funny that all the people that rip GM for making "gas guzzling SUVs" don't mention that it's Mercedes, VW (the great hippy brand BTW), Porsche, et al that are the offenders. NOT GM, NOT Ford, and NOT Chrysler.
I wonder if Senator Shelby's Alabama Benz plant cranked out any of the offending vehicles?!
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Gary 11:22AM (1/09/2009)
Shelby's a douche.
Craig 6:07PM (1/09/2009)
Huge fines? Doesn't anyone else find these very small fines for companies with multi-billion dollar annual budgets?
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johnizathome 6:30PM (1/09/2009)
You want someone to blame at the Euro car headquarters? Blame the US marketers for those companies. All the smart GERMANS want and buy are the fuel efficient DIESEL models of those cars, which put the CAFE standards in the dark ages.
So they've got to offload all those gas models somewhere, so why not the US market where uncivilized americans know no better about the other models available to the Euro market. Want diesel from BMW? All they'll give you is another 335, but a diesel one that gets a meager 35mpg instead of the 50 of lesser models.
And as for the 2.7TT being inefficient, I own one of these bastards, and can easily get 30mpg out of it at 60. There's no waste there unless I unleash my right foot and sink any ford flotsam beside me.
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Dominic 8:20PM (1/10/2009)
Another reason why Chrysler should not have gotten money for the bailout. All the money the CEO makes and cannot do the job properly. What a disgrace!
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John 8:26PM (1/10/2009)
CAFE is ridiculous anyway!!!! Why isnt it up to INDIVIDUAL buyers what mileage they are willing to accept? Why does Big Brother have to intervene in EVERY aspect of our lives? Remember, America was founded upon the ideals of individual liberty. So why do we act like this is even legitimate? ITS NOT. Leave it up to individuals what they drive and every one else can mind their own business...including the all-powerful liberty-stripping government!! No, you wont "kill the planet" if you drive an SUV. If you can afford the gas, go for it if you choose to...how is that anyone else's business? This insane nonsense needs to stop. Gee, how did we get into some of the messes we have to put up with nowadays...maybe too many stupid government mandates that do not make a hint of sense perhaps? Sheesh!!
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Dan 12:53AM (1/11/2009)
Chill, people who think like you are a minority in this country now. Look at the 2008 election results if you have any questions.