The same Senate-passed bill that could increase CAFE standards to 35 mpg by 2020 could also exempt Porsche from such regulations. Under the current law, any automaker that makes 10,000 vehicles or less per year is considered a low volume producer — resulting in relaxed standards. However, the new bill redefines a low-volume automaker as one with less than 0.4% of the U.S. market — or roughly 64,000 annual sales.
According to Automotive News, Porsche had record U.S. sales last year — selling 34,227 units. This volume puts Porsche well under the 0.4% proposed standard and would save the German automaker millions in fuel economy fines. Last year Porsche paid $4.6 million in fuel economy fines.
The new definition of a low-volume automaker could also benefit Land Rover and Jaguar . As independent companies, their U.S. sales would fall below the 0.4% threshold, exempting them from fuel economy fines. Three companies are bidding for the two luxury marques currently owned by Ford , with India’s Tata Motors recently emerging as the leading bidder.
However, some automakers feel that the new distinction for a low-volume producer is unfair. Even 64,000 units “really isn’t a small number,” said Jake Jones, Daimler AG’s vice president for external affairs and public policy. Jones added that with the industry’s growth, 0.4% of the U.S. market could mean as many as 100,000 vehicles in the near future.
Barbara Nocera, director of government and public affairs for Mazda North American Operations, is concerned that the new classification could open the door for new entrants into the U.S. market — such as automakers from India and China.
It remains unclear how Porsche ’s possible acquisition of Volkswagen would impact its standing with regard to the new classification. VW announced earlier this year that it plans to sell 1 million vehicles in the U.S. by 2018.
