MPMB
Well-Known Member
Reason why no bigger motor en masse for the JT? CAFE standards. The penalty for a 392 Wrangler/Gladiator will be huge, hence the extraneous markup. The end user is going to be paying for the CAFE fine, and then some. So a 5.7L is out of the question until Jeep can sell off the offsetting vehicles.
Reading more of the standards, it's a wholly convoluted policy and somewhat arbitrary.
It's calculated by the total number of vehicles sold, so it's a reactionary measure, and is unfair to brands who can't control what the market wants. There are controls to mitigate market forces, but it's still unfair.
NHTSA in 2016 bumped the penalty for missing the target average. It went to $5.50 per .1 mpg up to $14 per .1 mpg.
That's a 2.545x increase. M-B paid $28.4m in fines between 2010-2015; if they had the new rate applied, it'd be $72+ million. Or, in a "today's money" comparison, your $3.89/gal gas would be $9.90/gal. That's a huge overnight increase.
Back to the top - if the 392 vehicles have to meet (ha!) CAFE standard of say, 24mpg, but it can only squeeze out 14mpg, that's an 11mpg gap Jeep will get fined. At $14/per .1gal, that's a $1540 charge. Or $3080 to the buyer (retail theory - double what it cost you).
CAFE standards should not just penalize brands that miss the target, but award the same money for those that beat the target. Incentivize higher MPGs.
Jeep needs to roll out 4xe (or some hybrid option) to the Renegade; that's a great fleet vehicle for places that don't want a Prius fleet. Then the Cherokee.
I never really looked into CAFE standards. Now I know why auto manufacturers make all these weird little cars; like why Jeep rolled out the Patriot and the smaller vehicles (pun intended). And why Chevy and Ford are offering 4- & 6- cylinder engines in full-size trucks.
Reading more of the standards, it's a wholly convoluted policy and somewhat arbitrary.
It's calculated by the total number of vehicles sold, so it's a reactionary measure, and is unfair to brands who can't control what the market wants. There are controls to mitigate market forces, but it's still unfair.
NHTSA in 2016 bumped the penalty for missing the target average. It went to $5.50 per .1 mpg up to $14 per .1 mpg.
That's a 2.545x increase. M-B paid $28.4m in fines between 2010-2015; if they had the new rate applied, it'd be $72+ million. Or, in a "today's money" comparison, your $3.89/gal gas would be $9.90/gal. That's a huge overnight increase.
Back to the top - if the 392 vehicles have to meet (ha!) CAFE standard of say, 24mpg, but it can only squeeze out 14mpg, that's an 11mpg gap Jeep will get fined. At $14/per .1gal, that's a $1540 charge. Or $3080 to the buyer (retail theory - double what it cost you).
CAFE standards should not just penalize brands that miss the target, but award the same money for those that beat the target. Incentivize higher MPGs.
Jeep needs to roll out 4xe (or some hybrid option) to the Renegade; that's a great fleet vehicle for places that don't want a Prius fleet. Then the Cherokee.
I never really looked into CAFE standards. Now I know why auto manufacturers make all these weird little cars; like why Jeep rolled out the Patriot and the smaller vehicles (pun intended). And why Chevy and Ford are offering 4- & 6- cylinder engines in full-size trucks.
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