Quote:
Originally Posted by aerobod
What people have to understand is that BMW has no choice in producing more efficient cars if it wants to remain a global manufacturer with somewhat competitive pricing.
This is due to the fact that current EU legislation mandates penalties for excess CO2 emissions starting in 2012 ( all the gory details are here: http://eur-lex.europa.eu/LexUriServ/...001:01:EN:HTML )
As the EU makes up most of BMWs market, they need to remain competitive by averaging 130g/km of CO2 across the whole fleet. They haven't got a hope by just producing efficient Minis and selling them in enough quantities to offset the other BMW model emissions, as competition from other manufacturers will limit this option. Basically the full force of the legislation will be in place by 2015, at that point every 1g/km the fleet average is above 130g/km will cost 95 Euros in fines per vehicle sold in the EU, so if their fleet average is at 170g/km (it's current average), then for every vehicle sold BMW will have to pay 3,800 Euros (about US$4,700). This will likely make them un-competitive relative to other manufacturers who do comply.
Consequently BMW will be stupid to commit economic suicide by abandoning their core market to cater only to the relatively few enthusiasts who still want cars with high emissions.
Porsche will likely have to go further upmarket in pricing if they can't average with the VW group ($10,000 on a Boxster, $20,000 on a Panamera is likely). Ferrari will be looking at $25,000 or so in fines per car, which their market will absorb.
Manufacturers will have to decide whether they will do everything to make their cars more efficient and meet the EU targets, or become a niche manufacturer that only sells low volume high end cars or in markets outside the EU, I believe BMW will pick the former choice. |
What they should do is sell turbo cars with 5psi boost stock, then make it easy for people to "upgrade" after the car is sold. That would raise fleet mpg averages.