Filed under: Government/Legal, Green, Mercedes-Benz, Earnings/Financials
Mercedes-Benz pays $28.9m in fines for fuel efficiency crimes
According to the NHTSA, more than $37 million in fines were collected last year for cars sold in 2007 from manufacturers that failed to meet current CAFE standards. Of the six manufacturers that paid fines, Mercedes-Benz was hit the hardest, racking up an astounding $28.9 million bill that was paid in December. That's a huge figure, especially in this troubled automotive market, but it's actually a bit smaller than the $30.3 million fine paid by DaimlerChrysler the previous year -- a figure that still holds the record. Go Daimler!
Other marques that failed to meet CAFE requirements included Volkswagen, which was hit with a $4.5 million sum, along with Porsche and Maserati, both of which paid fees of $1.2 million and Ferrari, which managed to skate by with a relatively paltry $1.1 million fine.
With increasingly strict regulations expected in the near future, these fines don't exactly bode well for the manufacturers of higher-end luxury vehicles, and the fact that the timing for these requirements is still undecided makes it even tougher to plan for them.
[Source: Detroit Free Press]
Reader Comments (Page 1 of 4)
Ty 4:31PM (1/08/2009)
gotta force them to lower their emissions/increase fuel economy somehow.
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Chet 4:47PM (1/08/2009)
Gotta? Why? They're responding to market demand. There's no grand conspiracy withholding better fuel economy from vehicles, except perhaps for ever-ratcheting safety standards.
BigMcLargeHuge 4:57PM (1/08/2009)
Well said, Chet.
The government likes to have their cake and eat yours too.
Ty 5:01PM (1/08/2009)
market isn't always right. fuel economy should be way better than what it is now, even in 'fuel efficient' cars.
zamafir 5:09PM (1/08/2009)
Awesome. I'm not sure why everyone's so quick to run to Mercedes' defense and toss pot shots at the government, I don't see Lexus incurring almost $30,000,000 in fines... or Audi... or BMW... or Jaguar. I do see Audi continuing to increase market share and profitability for the thirteenth straight month and Mercedes continuing to loose market share to them, BMW and Lexus. But wait, this is Mercedes, purveyor of the new Hyundai inspired E class, certainly we can't take a more complete approach. It's defiantly the government being stupid. As Mercedes continues to loose market share due to their antiquated position I'm sure we'll continue to find scapegoats outside their management.
Yar 5:09PM (1/08/2009)
The market is always right, and we should leave the choice of fuel economy to the consumer rather than the politicians. After all, who are they to say what we should drive? They aren't scientists, nor are they automotive engineers. In fact, most of the people who are (and will be) in control of the country are lawyers, and in my experience I have never met one that I would leave in control of any decision making process.
zamafir 5:24PM (1/08/2009)
"The market is always right" - Yar
You haven't been following the news the last 6-12 months have you? That nostalgic vision was proven wrong months ago, come join us in 2009 will you.
Chet 5:49PM (1/08/2009)
Lexus doesn't get penalized because they're part of Toyota. BMW has Mini -- and before they did, they paid through the nose too. It's called Corporate Average Fuel Economy for a reason, and it doesn't improve the market so much as it skews it.
If the public thinks reducing fuel consumption is a priority, the public needs to demand that its government move the social cost much closer to the individual purchase decision. But the public doesn't want gas taxes at the pump or gas-guzzler taxes on the sticker -- we want the big bad corporations to quit hoarding all that magic stuff and all those huge profits they make off us and give us silent indestructible flying machines powered entirely by our sense of whimsy.
rypt 6:01PM (1/08/2009)
And Merc has Smart, plus they could always sell the A and possibly B class in USA.
jsjs 6:25PM (1/08/2009)
"But wait, this is Mercedes, purveyor of the new Hyundai inspired E class..."
Uhh, make that Lexus inspired E Class w/ a bit of BMW and other makes thrown in.
Steven 6:31PM (1/08/2009)
Ty, "The Market" which is the people, vote with their money. You libs make sick trying to froce your ideas on everyone. Let masses be free and you can go drive your Civics and Hugos.
why not the LS2LS7? 8:13PM (1/08/2009)
"The market" isn't your friend. It has no friends. The market lopped a third off your network in the last 6 months, and it'll do it again at the drop of a hat.
When it comes to whether satisfy "the market" or to satisfy people, there's no real question in my mind.
If everyone could be counted on to make the smart decision, we wouldn't need market controls. But the housing market has shown otherwise, and the car market (with SUV sales rising again on short-term low gas prices) shows it too.
akboss 8:59AM (1/09/2009)
LS2LS7 says it best:
"If everyone could be counted on to make the smart decision, we wouldn't need market controls."
People can be globally aware, caring, responsible individuals, but "the market" is impulsive and self-centered. What "people" don't understand is their buying habits are influenced every day by marketing guru's in boardrooms, planning what your 'free choice' is going to buy next. When the Ford Explorer (I use this example because it was such a giant seller) was mass popularized in 1995, it wasn't because of a sudden need to drive tall 4x4's, but a trend towards driving big, safe, capable lifestyle vehicles. It could be argued that this started a wonderful cycle of highly consuming, falsely safe, massive profit vehicles that our industry is paying for today. I see the government like a dog - I wouldn't have one that, if it were to suddenly go nuts, I couldn't control. It has its place in the family, just not calling all the shots.
Mobius_1 4:34PM (1/08/2009)
As I understand it, CAFE figures are from the manufacturers' sales, so whether they get fined and how much really depends on what consumers buy rather than what manufacturers have available. I can't quite put my thought into words, but this system is quite flawed IMHO.
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MachinaDC5 4:36PM (1/08/2009)
Quoth MB "Worth it."
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Geeky1 5:27PM (1/08/2009)
Absolutely worth it.
Keep it up, MB. There are still some of us that enjoy large engines with lots of torque that are quite willing to pay the price at the pump for it.
Jake B 5:38PM (1/08/2009)
At least the Germans are finally paying for their "crimes"
9600baud 4:40PM (1/08/2009)
and then people wonder why brands like Pontiac have random crapboxes in their lineup like the G3 or whatever its called just to meet CAFE standards.
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KeatMP 4:41PM (1/08/2009)
Go Chrysler!
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Brent 4:47PM (1/08/2009)
The free market takes care of this....not fines.
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