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Copyright 2000 Gannett Company, Inc.  
USA TODAY

June 30, 2000, Friday, FINAL EDITION

SECTION: LIFE; Pg. 9D

LENGTH: 211 words

HEADLINE: How the luxury car became a light truck

BYLINE: James R. Healey

BODY:
Volvo's XC station wagon is the latest member of the car-truck
crossover club.


Based on the chassis of a luxury car, XC nonetheless is classed
a light truck by the federal government. XC's off-road capabilities,
ground clearance and bumper height qualify it as Volvo's only
light truck, the automaker says.


"We did it for CAFE purposes," says Volvo spokesman Dan Johnston.
CAFE stands for corporate average fuel economy, the government's
miles-per-gallon standard.


Under CAFE, the combined fuel economy of all cars an automaker
sells must average 27.5 miles per gallon. Trucks enjoy a more-lenient
20.7 mpg. Automakers that miss those marks pay fines based on
how far off the average was in a year and how many vehicles they
sold.


XC's combined city-highway fuel economy is about 20 mpg using
the federal formula. That fails to meet the truck minimum of 20.7,
so Volvo still will have to pay a fine at year's end. But it will
be less than if XC were pooled with Volvo's cars, dragging down
their overall average. Volvo's cars average 26.5 mpg, Johnston
says, and Volvo pays a fine for their 1-mpg shortfall vs. the
CAFE standard.


DaimlerChrysler got its PT Cruiser classed as a truck for the
same fuel-economy benefits.


LOAD-DATE: July 01, 2000




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