 |
      |
|
Fresno, Calif.-Area Auto Dealers Challenge Rules to Reduce Smog
Emissions
By requiring a certain percentage of sales to be ZEVs, which are battery-operated under today's technology and then allowing manufacturers to hedge on that percentage by also selling vehicles that combine gasoline and battery power, the state has stepped into the area of fuel economy, the federal lawsuit states. "For more than a quarter century, a federal agency has enforced comprehensive, national fuel-economy rules," the suit says, adding that the new state regulations "are therefore pre-empted by federal law." The lawsuits were filed on behalf of General Motors Corp., DaimlerChrysler Corp. and the seven Valley dealers: Hedrick's Hallowell Chevrolet Inc. in Clovis; Kitahara Pontiac-GMC-Buick Inc. of Fresno; Keller Motors Inc., which has dealerships in Hanford and Coalinga; Surroz Motors Inc. of Visalia; Central Valley Chrysler Jeep in Modesto; Frontier Dodge in Modesto; and Tom Fields Motors Inc. in Turlock. Jerry Martin, a spokesman for the Air Resources Board, said the agency does not comment on litigation before the court, but the federal suit appears similar to one that was dismissed in federal court in Sacramento early last year. He said the board has not been served with the new lawsuits. The Valley dealerships named as plaintiffs in the suits have combined sales of more than 7,200 vehicles a year, of which 60 percent to 80 percent are truck sales, according to the lawsuits. "The losses in new vehicle sales due to the ZEV requirement are predicted on a statewide basis to reduce dealer profits by more than $110 million through 2006, with subsequent annual reductions over the next 15 years ranging from about $30 million to almost $50 million," the lawsuit states. The Valley's economy, a mix of agriculture and industry, reflects a disposable income that is considered "to be generally lower than in other, more urbanized parts of the state," the lawsuit states. And new vehicle sales are "particularly sensitive to price increases, and are dominated by trucks, often used by their owners for both commercial and non-commercial purposes." If the costs of new vehicles are driven up by the board regulations, it "will have a disproportionate impact on the economy of this region." Valley dealers who filed the suit were reluctant to comment and referred calls to company representatives. Ann Smith, a spokeswoman for DaimlerChrysler, said the Air Resources Board "significantly" changed the proposed regulations regarding the zero-emission vehicles last year without allowing sufficient time for public comment and then issued the new rules last month. "How seriously did they evaluate the public comment?" Smith asked. "They made significant changes that go to the heart of the [ZEV] mandate." Manufacturers say the zero-emission vehicles will be very expensive to produce and will have to be sold at losses, driving up the prices of gasoline-powered vehicles and thus hurting new car sales. Dave Barthmuss, a General Motors representative, said the company spent "billions" developing the EV1 battery-powered electric car to a point where it could market the futuristic two-seater for $700 a month and the public refused to accept it. GM launched EV1 sales in 1996 and discontinued the car four years later. According to the federal lawsuit, "the production cost for fuel-cell powered ZEVs could exceed the production cost of conventional vehicles by $9,000." Environmentalists have said that if New York and Massachusetts follow California's lead in requiring the ZEVs, the national market would improve and car companies will not be able to say there is a lack of interest. But according to the federal lawsuit, New York has adopted similar regulations involving the ZEVs and the courts need to review the California restrictions quickly "before there is any further erosion in the federal control of fuel economy standards in this country." While the federal suit challenges the state's ability to control fuel economy, the state lawsuit complains that the new regulations violate state environmental laws. The Fresno Bee, or to subscribe to the newspaper, go to http://www.fresnobee.com (c) 2002, The Fresno Bee, Calif. Distributed by Knight Ridder/Tribune
Business News. GM, DCX,
|