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German luxury automakers including BMW and Mercedes-Benz are close to benefiting from a U.S. concession that will allow them and a few other foreign makers to keep selling cars that emit more greenhouse gases than those made by mass-market rivals such as General Motors, Ford and Toyota.


So reports the Wall Street Journal today in an article (subscription required) that points out better than most how recent U.S. legislation benefits foreign automakers and harms domestic ones.


Under a provision of a plan to curb greenhouse-gas emissions, the Obama administration has proposed to set less stringent standards for carmakers that sell fewer than 400,000 vehicles a year in the U.S. That target defines the major German brands as well as a few smaller Asian manufacturers such as Suzuki Motor Corp. and Mitsubishi Motors Corp.


The easier targets are expected to apply to a limited portion of a carmaker's sales volume, and last for about four years -- unless the government grants an extension.


In effect, the "German provision" would make it easier for Mercedes to keep selling cars like its $147,000, 12-cylinder S600 sedan (pictured), rated at 13 miles per gallon, while GM or Toyota would be required to meet tougher mileage standards with smaller, more efficient cars, the Journal notes.


The rules are expected to be formally proposed later this year by the Environmental Protection Agency and the Department of Transportation to enforce the administration's mandate that makers boost the average fuel efficiency of their fleets to 35.5 miles mpg by 2016.


A spokesman for GM - now majority-owned by the federal government -- said the Obama administration's proposal "creates fewer concerns" than California's policy because it is expected to exempt only a quarter of each qualifying auto maker's fleet, rather than all vehicles sold by those companies. It also would be in effect for only four years, compared with seven under the California program.


Other industry experts and some former government policymakers take a more critical view of the administration's plan.


David Cole, chairman of the Center for Automotive Research at the University of Michigan, said the provision would hand "a distinct competitive advantage" to German and other exempted companies that compete with the major U.S. and Japanese brands in the U.S.


Daniel Becker, director of the Washington-based Safe Climate Campaign, which advocates tougher regulation of automotive fuel economy and greenhouse-gas emissions, said BMW and Mercedes "should be required to meet the same standards as General Motors and Ford."

Tags: BMW, Daimler, Emissions, Ford, Fuel Economy, General Motors, Legislation, Mercedes-Benz, BMW, Emissions, Ford, Fuel Economy, General Motors, GM, Mercedes-Benz, Toyota

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Concession on U.S. Fuel Rules to Spare BMW, Mercedes, but Harm GM and Ford was originally published by Green Car Advisor. Read the full story by clicking here.