S.T.A.P. saved?

[silvrsvt]

What the heck does CAFE have to do with domestic content? Isn't CAFE solely based on point of sale, not point of production? Why do automakers like Porsche and BMW still have to meet CAFE? Their vehicles are more or less 0% domestic content. Wouldn't their entire lineup be exempt then? Obviously they aren't, as BMW has paid hefty CAFE fines in recent years.

 

 

I guess they closed the loop hole they had...found this:

 

Incidentally, the Crown Vic became an "import" for a few years in the early '90s, built north of the border with a high level of Canadian content. The reason was CAFE, the Corporate Average Fuel Economy law that took effect with model-year '78 but had lately been relaxed somewhat.

 

Still, the Crown Vic had fair thirst (about 17 mpg city, 25 highway, as rated by the Environmental Protection Agency) and was thus a drain on Ford's domestic fleet-average economy. As an "import," the Crown Vic counted in Ford's non-domestic CAFE along with the tiny South Korean-built Festiva, whose really high mileage more than offset the big car's.

 

Later, Ford didn't need such tricks to comply with CAFE, so parts and labor were re-sourced to make the Crown Vic truly "American" again. Such is the silliness sometimes wrought by well-meaning regulations.

 

http://auto.howstuffworks.com/ford21.htm

 

The title of the article was Ford redesigns the Ford Crown Victoria :lol:

[1520 man]

PLEASE EVERYONE LISTEN TO ME!!! I HOPE AND PREY THAT STAP REMAINS IN THE FORD SYSTEM BUT IT WON'T!!!!!

 

THIS IS WHY----- WHEN THE C.A.W. NEGOTIATED THE BUYOUTS, WAS BECAUSE THE COMPANY TOLD THEM THAT THE SECOND SHIFT WAS PERMANENT JOB LOSS,,, MEANING TO NEVER RETURN!!!!!! THE TOWN CAR IS A BAND-AID TO A BIGGER PROBLEM, THAT IS IT. THAT IS ALL. BUZZ HAS ALREADY TOLD THE COMPANY TO TURN STAP INTO A LOW BUDGET PLANT. THAT MEANS LOWER WAGES!!!!!!

 

THOSE ARE THE FACTS. JUST ASK WHITEY MCDONALD!!!!!!!!!!!!!!!!

 

I have never heard so much bullshit before. Get off the crack pipe! Low budget plant? Your retarded! Ask Whitey? I have many times, and he always tells me we'll be fine. And I truly believe his word. Do you even know who Whitey is, probably not.

[Pioneer]

What the heck does CAFE have to do with domestic content? Isn't CAFE solely based on point of sale, not point of production? Why do automakers like Porsche and BMW still have to meet CAFE? Their vehicles are more or less 0% domestic content. Wouldn't their entire lineup be exempt then? Obviously they aren't, as BMW has paid hefty CAFE fines in recent years.

 

For the purposes of CAFE, a manufacturer's car output is divided into a domestic fleet (vehicles with more than 75% U.S., Canadian or—after the passage of NAFTA—Mexican content) and a foreign fleet (everything else). Each of these fleets must separately meet the requirements.

 

 

http://en.wikipedia.org/wiki/Corporate_Average_Fuel_Economy

[NickF1011]

http://en.wikipedia.org/wiki/Corporate_Average_Fuel_Economy

 

A-ha! [Johnny Carson]I did not know that![/Johnny Carson] Thanks!

 

Doesn't seem to make a lick of freakin' sense though.

[jpd80]

A-ha! [Johnny Carson]I did not know that![/Johnny Carson] Thanks!

 

Doesn't seem to make a lick of freakin' sense though.

 

For the purposes of CAFE, a manufacturer's car output is divided into a domestic fleet (vehicles with more than 75% U.S., Canadian or—after the passage of NAFTA—Mexican content) and a foreign fleet (everything else). Each of these fleets must separately meet the requirements. The two-fleet requirement was developed by the United Automobile Workers (UAW) as a means to ensure job creation in the US.

Outside of USA, Canadian and Mexician production, CAFE considers all others as imports.

If your thirstiest cars become imports, they go onto Import CAFE and Domestic CAFE looks much better.

Panther replacements and Fiestas would balance each other on the Imported CAFE.

 

The second half of the quote is interesting:

The two-fleet requirement was developed by the United Automobile Workers (UAW) as a means to ensure job creation in the US.

It's ironic that large vehicles will be forced onto an import register because of the two-fleet requirement.

[bb62]

Incidentally, the Crown Vic became an "import" for a few years in the early '90s, built north of the border with a high level of Canadian content. The reason was CAFE, the Corporate Average Fuel Economy law that took effect with model-year '78 but had lately been relaxed somewhat.

 

Still, the Crown Vic had fair thirst (about 17 mpg city, 25 highway, as rated by the Environmental Protection Agency) and was thus a drain on Ford's domestic fleet-average economy. As an "import," the Crown Vic counted in Ford's non-domestic CAFE along with the tiny South Korean-built Festiva, whose really high mileage more than offset the big car's.

 

Later, Ford didn't need such tricks to comply with CAFE, so parts and labor were re-sourced to make the Crown Vic truly "American" again. Such is the silliness sometimes wrought by well-meaning regulations.

 

This quote, which silvrsvt copied, is incorrect. The Crown Vic was considered an import back in the early 1990s because it had over 25% Mexican content not because it had Canadian content. All Canadian content is and was treated as though it came from the US and thus would be treated as a domestic.

 

The key concept utilized by the government when counting the value of parts was "substantial transformation". As long as the parts were in some significant way changed by a process in a non-US (and Canadian) work environment, then it would be considered an import part. In fact, the engines were assembled in Mexico (from purely domestic parts) and the action of assembly "substantially transformed" the parts to something different based on government guidelines. Along with some parts like wiring harnesses and fuel tanks (if memory serves me well), the overall value of the parts was brought to just over 25% inported and thus the car was counted as an import..

[jpd80]

So under NAFTA, Canadian and Mexican vehicles are considered US domestic CAFE fleet, yes?

[Pioneer]

So under NAFTA, Canadian and Mexican vehicles are considered US domestic CAFE fleet, yes?

 

 

As long as they have a part/assembly content equal to or greater than 75%. It's still conceivable to assemble a vehicle in Mexico, Canada and the U.S. and still not have it counted as a domestic vehicle.

[SysEng]

I have never heard so much bullshit before. Get off the crack pipe! Low budget plant? Your retarded! Ask Whitey? I have many times, and he always tells me we'll be fine. And I truly believe his word. Do you even know who Whitey is, probably not.

 

Agree in more than one sense. STAP will be fine not only because they produce the "panther", but because the current downturn in sales is predicated by lower available cash in the target demographic ( thats highly temporary ) and stale styling... something that we both know could be fixed in less than a month.

 

Theres also the implied threat from GMC in the RWD area and the loss of sales to DCX ( 300C et. al. ) which someone at Ford is gonna answer for in the exec suite.

 

Just make sure the cars are perfect coming off the line. ( rumor is that some March '07 cars were a little off on the right side ) Things will take care of themselves.