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New efficiency rules could hurt GM’s monster SUV business

03/22/2006, 10:24 AM

By admin

The Bush administration is considering subjecting large sport-utility vehicles to fuel-economy standards for the first time, reports the Wall Street Jorunal. The move would please environmentalists, but put increased pressure on struggling automakers like GM. The rules would affect vehicles weighing between 8,500 and 10,000 pounds. GM would be hit hardest, with the Hummer H2, Chevy Suburban and GMC Yukon XL, all being affected. The Ford Excursion would also be affected, but it has been discontinued. The move could force GM to limit sales of the vehicles to avoid penalties. The plan would not affect pickup trucks, which make up the majority of vehicles over 8,500 pounds. Full Article Here (subscription required). [via]

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03/22, 10:36 AM

posted by:

Anonymous

With the overthrow of GM, Bush could be blamed for making Detroit look like Bagdad … but then it already does?!

Fuel-economy standards for SUVs would be like carpet bombing Bloomfield Hills – not a bad thing however.

…but it’s just more distractions; the word was out last month the EPA jacks up the sticker mileage to suit GM already.

“Your results may vary.” is not an advisory; it’s a given.

jim

03/22, 10:59 AM

posted by:

amp

Am I correct in assuming the reason this would hurt GM is b/c of its impact on CAFE? If so, this seems like a dumb move. Why should they try and force GM to sell fewer of the most fuel efficient SUV’s in the large SUV class while Toyota and Nissan are allowed to sell their Sequoias and Armadas unabaited?

Assuming that continued high gas prices scare most of the posers back in to small vehicles, you’ll be left with people who truly need the size and capability of a large SUV. By restricting GM’s production of their SUV’s, you’ll be forcing consumers to buy less efficient vehicles. Seems kind of dumb to me.

03/22, 11:11 AM

posted by:

Jim Jones

Since when does a Suburban weigh 8500 pounds?? Are these number gorss vehicle weight? My 3/4 ton 98 Suburban only weighed 5900 lbs. So how could this affect the newer smaller, lighter Sububans. Souinds like a ploy by GM for its current woes.

03/22, 11:33 AM

posted by:

michael jackson

i agree it’s about time

03/22, 3:57 PM

posted by:

gsh

seriously, what soccer mom needs a 8500-10,000 lbs suv??? a minivan weighs less that half that yet does the same thing as a suv..

03/22, 4:00 PM

posted by:

Adam

Everyone picks on soccer moms, lets not forget all the dudes who comute in these worthless things too. It is funny that these things serve the exact same purpose for most people as a minivan does, but somehow these are “cool.”

03/22, 10:25 PM

posted by:

lars ulrich

i hate bush, but i realllly liked that decision.

08/17, 10:25 PM

posted by:

businessopportunities

businessopportunities businessopportunities

 
 
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