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.
11/27, 9:36 AM
posted by:
maximus
What are they supposed to do, put 4 cylinder engines in every car?
11/27, 9:59 AM
posted by:
Brendino
If that’s the rules, then yes, they do.
If they can change the rules to suit themselves, then…more power to em, I guess.
CAFE is dumb anyways. Well-intentioned but dumb.
11/27, 10:05 AM
posted by:
sharpie
Guess Ford should keep Jaguar and Land Rover now
11/27, 10:15 AM
posted by:
johnnycanuck
So how close is Ford to qualifying for this exemption?
11/27, 10:46 AM
posted by:
autonut
This is screwed u!. Instead of selling Chevys GM will have to incorporate a large number of brands/companies. They don’t intend to sell more then 64,000 Corvettes therefore GM can re-budge the model to Corvette from Chevy and don’t bother with compliance. This is much worse then all our tax insanities: those who really can afford to pay for extra research to clean up tail pipe are exempt.
11/27, 11:41 AM
posted by:
Jazz
hmm… so lets see. Manufacturuers exempted:
Porsche, Ferrari, Aston Martin, Bentley , Rolls Royce, Maybach, Lamborghini, Saleen.
Did I miss any?
Basically a loophole for rich people to get access to the cars they want. Nice.
11/27, 11:59 AM
posted by:
jackjimturkey
CAFE should be scrapped, and the Sierra Club should be forcibly disbanded.
11/27, 12:38 PM
posted by:
CTS DRIVER
if porsche owns vw,audi and lamborghini then what is the ****ing problem they should shut up and comply like the rest of the world who sells cars here does.
11/27, 2:29 PM
posted by:
TOZO
That’s a really stupid bill, and a very unfair one. The small Chinese and Indian automakers of the future will go unpunished, and cover the continent with their crappy cars and high emissions. The future overlords of Jaguar/LR will also go unpunished!
If Porsche’s volume is too low, it’ll just either pay the fine (which it can do since it is so rich) or buy Volkswagen. And also – this will not kill Isuzu, so what’s the point!?!
11/27, 3:27 PM
posted by:
CA36GTP
Gotta love Democrats. Anything to screw over Americans and benefit others.
11/27, 4:24 PM
posted by:
jackjimturkey
CA36: Both major parties are screwing us, don’t be fooled!
11/27, 8:23 PM
posted by:
DeansterTJ
Interesting, but I see these companies reshuffling the corporate arms to look like independent firms so they can also become exempt.
11/27, 8:55 PM
posted by:
67_L-88
Here you have it folks, proof it isn’t who you know, but how much you make.
11/27, 9:10 PM
posted by:
A4
maybe porsche wont screw volkswagen anymore!
11/28, 8:48 AM
posted by:
CA36GTP
JJT: Yea, but at least Republicans try to hide it. Democrats are pretty blatant about pushing their ****ty ideas.
11/28, 9:41 AM
posted by:
Z06ified
What is the purpose of exempting low volume producers? That’s just stupid. Smells of lobbyists at work again. Stupid politicians.
11/28, 8:25 PM
posted by:
jackjimturkey
Lobbyists suck!
07/07, 1:34 PM
posted by:
supermario21
CAFE should be done away with. It is a restriction on individual liberties. Many Porsche owners (and other car enthusiasts, Dodge Viper, Saleen, Corvette, etc) do not care about fuel economy and/or gas prices. Higher standards would restrict their freedoms in purchasing a car of their choice. A Porsche 911 Turbo I rode in averaged 27.4 MPG on a 120 mile drive to Mid Ohio sportscar course. That is good for a high performance vehicle. Many vipers and Vettes would struggle to reach 20. Therefore, CAFE should be done away with, it is nothing but government bureaucracy. Many automakers are building more fuel effecient cars because people don’t want to pay high gas prices. Capitalism works. Let the individual choose what they want, and not have the government restrict our freedom.