• 07Aug

    Last May, everyone was looking at the figures being demanded by the fuel efficiency regulations of the United States which sets the bar at 35.5mpg by 2016. BMW X6 MThe number applies to the average of all the brands produced by the carmakers. Foreign marques though selling luxury cars in the US may have some way out of this stringent policy.

    The Obama administration may have some slack for the foreign luxury brands coded the German proposition by some lobbyists. The foreign manufacturers which do not sell more than 400,000 units annually in the U.S. may just be subjected to less rigid rules.

    Some of the brands which will obviously benefit from the loophole will be Mercedes-Benz, BMW, and Porsche. These are the same brands which have been opposing the proposed fuel efficiency rules ever since.

    Looking at the loophole though justifies its sense. Smaller car manufacturers are the least likely to be able to adjust to the cost since they don’t have low end vehicles which can pump their efficiency figures.

    Small volume of cars being produced means that the cost of improving the fuel efficiency of the fleet will be higher. The new policy anyway aims to save money and help the environment, but not to close down any car business.

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