Ford Motor Company (NYSE:F) is going to reduce the fuel-economy rating on the C-Max Hybrid car. This will be costly for Ford as they spent months trying to avoid this issue. Ford Motor Company (NYSE:F) is already facing lawsuits about worse than expected fuel economy than some of their vehicles including the C-Max. The C-Max windows stickers shows that the vehicles get 47MPG for the city, highway, and combined driving based on tests that Ford conducted and sent to the EPA. The new fuel economy rating on the C-Max is expected to be lowered to 43MPG, which is about 10% lower.
Ford Motor Company (NYSE:F) is the second automotive company to back down on higher fuel-economy claims in the past year due to pressure from the Environmental Protection Agency (EPA). Hyundai agreed to change their labels on most models after the EPA discovered that Hyundai and Kia both submitted flawed results for one of the tests that are use to calculate fuel economy numbers. The 4 Hyundai and Kia nameplates were advertised as being able to get 40MP in highway driving, but now the new labels show 36-38MPG. Hyundai and Kia gave customers of 900,000 vehicles prepaid fuel cards to compensate for the differences, which costed Hyundai around $225 million and Kia about $187 million.
The EPA is expected to announce this Friday that they will be revising test procedures for how hybrid vehicles are given fuel economy ratings and labels. Ford Motor Company (NYSE:F) has been putting the 47MPG number at the forefront of the C-Max advertising campaign especially when comparing the vehicle against the Toyota Prius.