Consumers Still Want Gas Guzzlers Sport Trucks Pose Problems
Americans’ love affair with sport utility vehicles and pickup trucks could pose a big problem down the road for General Motors Corp. - multi-million-dollar fines for failing to meet the government’s fuel economy standard.
Indeed, GM, Chrysler Corp. and Ford Motor Co. all have struggled during the past few years with the fuel efficiency standard for “light trucks” - sport utility vehicles, pickups and minivans.
Automakers cite a clash between consumers’ demand for larger vehicles and the government’s standards.
The increasing popularity of larger sport utility vehicles and torrid sales of pickup trucks - both of which get worse mileage than minivans - are inflating the fuel economy average.
Chrysler spokesman Jason Vines said the standard “puts us at war with our customers.”
GM sold 1.9 million so-called light trucks in 1995 and missed the target of 20.7 miles per gallon by 0.5 mpg on average.
Car-makers can be fined up to $5.50 per vehicle for each one-tenth of a mile they fall short.
For GM, that could translate to a fine of more than $45 million for not meeting the 1995 standard.
The outcome is still up in the air. The car-maker may be able to avoid penalties by claiming credits for beating the standard in previous or future years.
“What the future holds is still questionable,” said GM spokesman Randy Fox.
Mercedes-Benz has paid fines as large as $25.9 million for making gas guzzlers, but none of the Big Three U.S. automakers has ever had to pay a penalty.
The fuel economy standard is 27.5 miles per gallon for cars. The Big Three, for the most part, have met that standard.
But GM’s light trucks fell below the standard for their category in 1993 and stayed below until 1996. Chrysler has been below the standard since 1994 and Ford since last year.