How does Ford avoid the Gas Guzzler Tax?

[fogus]

While not the up to 2015, the EPA's list shows no Ford vehicles being subjected to a "Gas Guzzler Tax".

What is the explanation for this given that the 5.0 produces 19 MPG combined, clearly below the 22.5 MPG minimum? ("Manufacturers of new cars that fail to meet the minimum fuel economy level of 22.5 miles per gallon (mpg) have to pay a 'Gas Guzzler Tax.'")

I am thankful for avoiding this tax, although, from what I have read, the tax is hidden in the vehicle base price, not something you get presented with after estimating your payments based on quoted price. Although a hidden tax is just as expensive as a surprise tax, I think I would prefer my taxes hidden rather than surprising.

 

[50racer]

that is a good question. Although they don't use the 19 as the number because the calculation they use for the tax is based on 55% highway and 45% city driving so it is higher than 19 (not as high as 22.5)

 

[madweazl]

Emissions credits across the line of vehicles I imagine.

 

[fogus]

That would get them to 20.5.

 

[ForTehNguyen]

retarded regs. Cars get hit with GG but not large SUVs that get even less mpg

 

[Rough Hollow Man]

The calculation to determine the GG tax is based on total model sales for the year, not sales by engine variant sales. In other words, by total Mustangs sold of all engine types. So all three engine sales are averaged together to get the Mustang model average and then the tax is computed. Hence you GT fellas ought to thank V-6 equipped Mustang sales for bringing the average up. The combined Hwy/City mileage for the Cyclone Mustangs is 22.0 on my convertible...might be a tad higher on the fastback though. Can the lowly Cyclone engine have helped the mighty Coyote engine escape the dreaded Gas Guzzler Tax? Enquiring minds want to know? Popcorn anyone?

 

[50racer]

I originally thought the same thing that is was going across the entire family, but that would not explain why the GT350 has the gg tax.

 

[Rough Hollow Man]

I originally thought the same thing that is was going across the entire family, but that would not explain why the GT350 has the gg tax.

Well for one thing it's a 2016 and not a 2015, which is important since the tax is paid after the model year runs. And Ford still has the Shelby name involved, so maybe it's classified as a separate model for tax purposes. Or it could be that so few will be sold that Ford doesn't worry that it will drag down the overall Model mileage numbers. Only Ford can answer definitely.:ford: Or it might be as simple as Ford thinking that high-end car buyers will just "pony up" the Gas Guzzler Tax on GT350s.addle: Someone will solve the riddle?

 

[Glenn G]

The calculation to determine the GG tax is based on total model sales for the year, not sales by engine variant sales. In other words, by total Mustangs sold of all engine types. So all three engine sales are averaged together to get the Mustang model average and then the tax is computed. Hence you GT fellas ought to thank V-6 equipped Mustang sales for bringing the average up. The combined Hwy/City mileage for the Cyclone Mustangs is 22.0 on my convertible...might be a tad higher on the fastback though. Can the lowly Cyclone engine have helped the mighty Coyote engine escape the dreaded Gas Guzzler Tax? Enquiring minds want to know? Popcorn anyone?

Correction, they should thank the 41% or so of Ecoboost Buyers, the 17% or so of V6 with thier slightly worse EPA ratings actually hurt those numbers.

A break down by engines by one dealer (55% highway 45% City)
42% 5.0: 20.50 mpg
41% 2.3: 26.95 mpg
17% 3.7: 23.05 mpg

comes out to a Fleet average of 23.58 mpg avoiding the GG tax

if there was no eco and those were all v6s?
Fleet Fuel economy would be 21.98, GG tax range,


If there were no V6? 24.24 mpg fleet average

Which is why Ford is not allowing a PP or premium V6, They want the higher CAFE numbers more eco's will provide.

 

[Herr_Poopschitz]

The calculation to determine the GG tax is based on total model sales for the year, not sales by engine variant sales. In other words, by total Mustangs sold of all engine types.

By this logic, the GT350 would not have a GG tax applied, but it sure as hell does.

It's explained in the document given.

"EPA studies indicate that vehicles driven by typical drivers under typical road conditions get approximately 70 to 90 percent of the laboratory test-based city miles per gallon (mpg) value and approximately 70 to 80 percent of laboratory highway mpg value. This difference is referred to as “in-use shortfall.” To account for the in-use shortfall, the city and highway mpg values listed in Fuel Economy Guide and shown on fuel economy labels are based on fuel economy test results of the city and highway tests plus three additional tests. The three additional tests measure fuel economy 1) at cold ambient temperatures, 2) at warmer temperatures with the air conditioner running, and 3) when operated at high speeds and high acceleration rates. However, the combined city and highway fuel economy that is used to determine tax liability is not adjusted to account for in-use shortfall, so it is higher than the mpg values provided in the Fuel Economy Guide (www.fueleconomy.gov) and posted on the window stickers of new vehicles."

Reading is good. Understanding what is read is gooder.

 

[Rough Hollow Man]

How could the 2016 GT350 have paid the Gas Guzzler Tax? The tax isn't even computed until after the model year run...much less paid. Has Ford said that their will be a GG Tax on these vehicles? Maybe to justify an outrageous price? Mmmm

 

[GigaHz]

The Pontiac G8 had manual and auto. One had the GG tax and the other didn't. The Chevy SS is the same. The manual avoids the tax and the auto has to pay it.

 

[Rough Hollow Man]

There is nothing more confounding than federal taxes! Corporations engage here at their
peril. What has the Gas Guzzler Tax gained? Not a F__k__g thing!

 

[fogus]

So they didn't tax me because someone else bought a different vehicle.

Thanks for clearing that up. It actually makes sense now (because it doesn't, and that makes sense for taxes).

 

[Rough Hollow Man]

So correct!

So they didn't tax me because someone else bought a different vehicle.

Thanks for clearing that up. It actually makes sense now (because it doesn't, and that makes sense for taxes).

You Fogus, are wise beyond your years!:headbonk: