New CAFE Rules Could Hurt Top Automakers
The National Highway Traffic Safety Administration (NHTSA) may be planning to create two sliding scales of efficiency for vehicles of different sizes, in light of the proposed new fuel economy rules. This will put pressure on automaker companies that carry powerful short wheelbase models. These companies will be assigned fuel economy standards based on what they call a “Footprint”, and the amount of vehicles they sell. The “footprints” are determined by the wheel base of the vehicle, for example short wheelbase will have a small “footprint”.
Most of the pressure financially will fall onto Porsche, Mercedes-Benz, BMW, and other luxury brands with high-performance models. These new standards will possibly be quite costly. Some automakers like Porsche might find it easier to pay the fine associated with the new rules than changing a model lineup. Regulators are pressured to adopt a policy by April 1, 2009 . For now, the NHTSA will be taking public comments over the next two months.