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Daimler-Chrysler hit with record fines for low fuel economy
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Posted 1/2/2008 10:08 PM
cmitch
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Date registered: Apr 2006
Location: Ala-Tenn
Vehicle(s): 2002 ML320, 2005 S430 4Matic, 2010 F150 Super Crew
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Daimler-Chrysler hit with record fines for low fuel economy

 

Mercedes-Benz cars draw $30.3 million penalty for violating fuel economy standards.

NEW YORK (CNNMoney.com) -- DaimlerChrysler has been hit with the largest fine ever assessed against any company for violating fuel economy standards set by the federal government.

The automaker was split into two companies last year when its Chrysler division was purchased by a private equity firm.

The fine of $30.3 million was assessed for 2006 model year imported passenger cars. That means the fine was assessed almost entirely against the company's Mercedes-Benz luxury cars. The only imported car sold as a Chrysler was the German-built Crossfire sports car.

For the 2006 model year, the average fuel economy of passenger cars imported by DaimlerChrysler - as measured for "corporate average fuel economy," or CAFE, purposes - was 24.8 miles per gallon. The government requires an average of 27.5 mpg.

The fine for violating CAFE standards is $5.50 for ever tenth of a mile under the 27.5 mpg goal, multiplied by the number of vehicles imported. The record fine is nearly double the $16,895,472 the company had to pay for the 2005 model year.

The fuel economy figures used by the National Highway Traffic Safety Administration (NHTSA), which administers the CAFE program, are calculated differently from Environmental Protection Agency fuel economy figures shown on vehicle window stickers. In general, NHTSA's CAFE figures are about 25 percent higher, according to the EPA.

The target of 27.5 mpg is the same for domestic and imported cars, but averages for domestic and imported cars are tabulated separately.

The fine assessed against DaimlerChrysler surpassed the previous record $28 million fine against BMW for the 2001 model year. For the 2006 model year, BMW was hit with the second-biggest fine, but at about $5 million it was much lower than DaimlerChrysler's.

No American or Asian car company has ever had to pay a fine for violating government CAFE standards. Only European car companies, which mostly sell luxury and performance-oriented cars here, have had to pay such fines - and many do so routinely

Representatives of Mercedes-Benz USA and Chrysler LLC did not immediately respond to requests for comments on the fine. Since the fine was assessed against the combined DaimlerChrysler, it is not clear what portion of the fine, if any, Chrysler LLC will have to pay.

Cars produced in Canada and Mexico are counted as domestic products under fuel economy regulations.
#102967
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Posted 1/2/2008 11:37 PM
Marsden
Classic MB




Date registered: Apr 2006
Location: Capital City USA
Vehicle(s): Mercedes-Benz
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RE: Daimler-Chrysler hit with record fines for low fuel economy

I knew it!  It's all my fault!

 

#102979 - in reply to #102967
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Posted 1/3/2008 10:35 AM
Roch207
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Date registered: Apr 2006
Location: Palmetto State
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Re: Daimler-Chrysler hit with record fines for low fuel economy

You had to get rid of the diesel!

Now maybe they will start importing more diesels...like a

G320 CDI
E320 CDI 4matic Estate
S420 CDI

for starters
#103043 - in reply to #102967
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Posted 1/3/2008 11:56 AM
AsianML

Date registered: Dec 1899
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Re: Daimler-Chrysler hit with record fines for low fuel economy

Roch207 - 1/3/2008 10:35 AM You had to get rid of the diesel! Now maybe they will start importing more diesels...like a G320 CDI E320 CDI 4matic Estate S420 CDI for starters
That's what I'm talking about!!!
#103055 - in reply to #103043
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Posted 1/3/2008 4:23 PM
Misfit

Date registered: Dec 1899
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RE: Daimler-Chrysler hit with record fines for low fuel economy

And if Smart takes off down there - that will offset quite a bit ......
#103093 - in reply to #102967
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Posted 1/4/2008 1:11 AM
Marsden
Classic MB




Date registered: Apr 2006
Location: Capital City USA
Vehicle(s): Mercedes-Benz
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RE: Daimler-Chrysler hit with record fines for low fuel economy

CL320 CDI

 

#103122 - in reply to #102967
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Posted 1/4/2008 12:40 PM
AsianML

Date registered: Dec 1899
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Re: Daimler-Chrysler hit with record fines for low fuel economy

I want that CLS350 CGI. Meh, I'll get a very, very used Prius. I'll keep that in the very back of the house behind the shed and then I'll go buy an S65 AMG, SLR McLaren, Bugatti Veyron, Lambo Reventon, Range Rover, GL550, and maybe an H1. But it'll be OK because I have a Prius...somewhere.
#103164 - in reply to #103122
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Posted 1/4/2008 2:20 PM
lkchris
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Date registered: Nov 2006
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RE: Daimler-Chrysler hit with record fines for low fuel economy

Misfit - 1/3/2008 2:23 PMAnd if Smart takes off down there - that will offset quite a bit ......
And, if they'd only bring in the 70mpg diesel version ...

 Could be, however, since SMART isn't imported by MBUSA but rather by Penske, it won't be counted against MBUSA's imports.



Edited by lkchris 1/4/2008 2:23 PM
#103184 - in reply to #103093
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Posted 1/11/2008 4:22 AM
Woody
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Date registered: Feb 2007
Location: Bend, Ore.
Vehicle(s): '84 280GE -> 300GD turbo, '84 300SD veg, 06 Navion
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RE: Daimler-Chrysler hit with record fines for low fuel economy

That's some nerve. This makes it sound like MBUSA intends to violate the CAFE standard and it's customers get the privilege of paying twice:

Guzzler tax + subsidize the maker =

Kicker, the Gov't gets it twice, too:

Guzzler tax + 30 mil fine =

sheesh.
#104426 - in reply to #102967
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