http://www.nytimes.com/2004/01/13/automobiles/13SUBA.html?pagewanted=p 
rint&position=

January 13, 2004

To Avoid Fuel Limits, Subaru Is Turning a Sedan Into a Truck
By DANNY HAKIM

DETROIT, Jan. 12 - The Subaru Outback sedan looks like any other 
midsize car, with a trunk and comfortable seating for four adults.

But Subaru is tweaking some parts of the Outback sedan and wagon this 
year to meet the specifications of a light truck, the same regulatory 
category used by pickups and sport utilities. Why? Largely to avoid 
tougher fuel economy and air pollution standards for cars.

It is the first time an automaker plans to make changes in a sedan - 
like raising its ground clearance by about an inch and a half - so it 
can qualify as a light truck. But it is hardly the first time an 
automaker has taken advantage of the nation's complex fuel 
regulations, which divide each manufacturer's annual vehicle fleet 
into two categories. Light trucks will have to average only 21.2 
miles a gallon in the 2005 model year. By contrast, each automaker's 
full fleet of passenger cars must average 27.5 miles a gallon.

The move will let Subaru sell more vehicles with turbochargers, which 
pep up performance but hurt mileage and increase pollution. "It was 
difficult to achieve emissions performance with the turbos," said 
Fred D. Adcock, executive vice president of Subaru of America. They 
also made it hard to meet fleetwide fuel economy standards for cars.

Subaru's strategy highlights what environmentalists, consumer groups 
and some politicians say is a loophole in the fuel economy 
regulations that has undermined the government's ability to actually 
cut gas consumption. The average fuel economy for new vehicles is 
lower now than it was two decades ago, despite advances in 
fuel-saving technology.

"This is a new low for the auto industry, and it would make George 
Orwell proud," said Daniel Becker, a global warming expert at the 
Sierra Club.

It is particularly striking that Subaru wants to call the Outback a 
light truck because many of its owners see the wagon version as a 
rugged alternative to a sport utility, and the Outback sells best in 
those parts of the country, like college towns, where many people 
think it unfashionable to own an S.U.V.

"I probably can't count my friends with Outbacks on one hand - I'd 
have to use feet and toes," said Elizabeth Ike, 29, a fund-raiser at 
Sweet Briar College, which is an hour south of Charlottesville, Va. 
She said "the Outback might as well be Charlottesville's official 
car," adding that the town "likes to think of itself as an island 
that is more globally aware than the rest of the state."

"I don't want to speak for my friends, but I think they probably 
don't want to be that person in the Excursion," she said, referring 
to Ford's largest sport utility.

Subaru, a unit of Fuji Heavy Industries, says the new Outback, which 
will make its debut next month at the Chicago auto show and go on 
sale this spring, will retain its not-an-S.U.V. image because the 
changes being made are technical in nature. What customers will 
notice will be the new Outback's glossier look, executives said. 
Further, the base model will be more fuel efficient than the current 
version.

They said that calling the Outback a light truck will also let them 
offer the option of a tinted rear window not allowed on passenger 
cars.

Subaru executives noted that the sedan version of the Outback 
accounts for only about 8 percent of the model's sales, or about 
3,500 vehicles a year; the rest are wagons. But critics say the 
actual numbers are less important than the precedent that the 
reclassification would set.

"If they can do it with a sedan, then anyone can do it with a sedan," 
said John DeCicco, a senior fellow and fuel economy expert at 
Environmental Defense. "It's almost like anything goes at this point."

Federal regulations originally set less-stringent fuel economy and 
emissions requirements for light trucks to avoid penalizing builders, 
farmers and other working people who relied on pickups. But the 
exemption opened the way for automakers to replace sedans and station 
wagons with vehicles that fit the definition of a light truck, 
notably sport utility vehicles and minivans.

Light trucks now account for more than half of all passenger vehicles 
sold in the country, up from about a fifth in the late 1970's.

The Transportation Department oversees corporate average fuel economy 
regulations and fines companies that do not comply with the rules.

Companies that change a borderline vehicle can benefit in two ways, 
because a big wagon that can sink an automaker's car average may 
improve its truck average. That, in turn, makes it possible to 
produce more big trucks and still meet the overall truck standard.

Since the regulatory system was put in place after the oil shocks of 
the 1970's, the industry has not only invented the minivan and 
greatly expanded the sport utility and pickup markets, but also 
started selling wagonlike "crossover" vehicles, like Chrysler's PT 
Cruiser, that blend cars and S.U.V.'s but are designed to meet the 
specifications of light trucks.

There are different ways to make a car meet the federal definition of 
a light truck, including making the rear seats removable to give a 
wagon a flat loading floor or raising a vehicle's ground clearance to 
at least 20 centimeters, or a little less than 8 inches. Subaru will 
raise the Outback's height from a minimum of 7.3 inches to as much as 
8.7 inches next year, and will make other adjustments, like altering 
the position of the rear bumper, to meet light truck specifications.

Significantly raising the ride height can have a hazardous effect on 
a vehicle's stability. Part of the current Outback's appeal is that 
it performs better than S.U.V.'s on rollover tests.

"I live in the northern suburbs of New York and I saw a lot of 
S.U.V.'s on their backs like turtles," said Ralph Schiavone, 46, a 
consultant who lives in Westchester County, N.Y., explaining why he 
bought an Outback.

Tim Hurd, a spokesman for the National Highway Traffic Safety 
Administration, a branch of the Transportation Department, said a 
vehicle either met the specific technical requirements of being a 
light truck, or it did not. "They aren't a judgment call," he said.

Added to the complexity of the system is the fact that tailpipe 
emissions of pollutants are overseen by the Environmental Protection 
Agency, which has classification rules that do not match those of the 
Transportation Department. The E.P.A., however, has said it will 
phase out the distinction between cars and trucks this decade.

Congressional efforts to change fuel economy standards face 
entrenched opposition from some members of both political parties. 
But last month, the Bush administration proposed an overhaul of fuel 
regulations for light trucks and an altered definition to rein in 
classification problems.

Environmental groups and consumer advocates have generally criticized 
the administration's proposals as potentially making a complicated 
system even more prone to manipulation, though they say aspects of 
the plan - in an early, undetailed form - could be beneficial.

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