Tuesday, April 26, 2011

New York May Finally Get a Mercedes Taxi- But Is It Worth It?

Go to Europe or the Middle East and a Mercedes-Benz diesel-powered taxi cab is the norm. Historically, Mercedes-Benz diesels have been the taxi of choice because of their proven robustness and ability to log hundreds of thousands, if not millions of miles. To get an idea of how far back this tradition goes back and why- click here. As of today, the Taxi and Limousine Commission (TLC) has added the new Mercedes-Benz E350 BlueTec diesel sedan to its growing and evolving list of approved taxi vehicles in New York City.

Just a few years back, you'd be hard-pressed to ride in any other kind of taxi besides a Ford Crown Victoria, but that all changed when the TLC started commissioning other kinds of vehicles, in a addition to hybrids and other alternative fuel vehicles to the fleet. Another small detail- the Ford Crown Victoria, the venerable "King of the New York Cabs" since the Checker Marathon, is no longer being produced with no real heir to the throne.

The Mercedes-Benz BlueTec technology is advanced. For the first time in years it's a 50-State EPA emissions compliant diesel- which was somewhat of a hurtle in the past. What makes the technology unique is AdBlue, an equine urea-based solution that reduces the harmful emissions diesel engines emit.

(Yes, horse piss makes it all better.) But it's a bit more complicated than that.

This solution is stored in the vehicle and gets used as the miles rack-up. At 100,000 miles it has to be replaced at roughly $1500 a shot- or think of it as a 1.5 cent surcharge-per-mile.

Pile this on to the $1500 increase in base MSRP over the similar gasoline-powered Mercedes-Benz E350, and you're looking at a 3-cent surcharge per mile for the diesel.

Is a sedan that lists for some $51,000 really a viable option these days for livery duties? I really don't know- but I will tell you- from a general consumers' standpoint, I don't think the diesel is a compelling choice as it once was.

The expensive initial price tag aside, the improved economy figures the E350 BlueTec promises, 24 city/34 highway miles-per-gallon, aren't exactly stellar given the costs. Especially these days, when all cars are getting better economy figures without going diesel.

Additionally, the TLC requires New York City cabs be retired or replaced every three-to-five years- not nearly enough time to recoup the high costs and the incremental higher costs of diesel fuel the Mercedes-Benz BlueTec racks-up.

Cabbies around the world bought Mercedes-Benz taxis because it was the only car able to rack-up hundreds of thousands of trouble-free miles; but I don't think this is the case so much as before. There are a lot of robust, cost-effective and efficient cars out there- and they don't cost $51,000. And $51,000 is a lot to depreciate over a scant three-to-five years.

The latest Ford Crown Victoria was so successful because it was simple, robust, cheap with a stellar support/supply chain of parts and service. I personally have been in Crown Vic taxis with half-a-million miles on them. I've also driven a Mercedes-Benz Diesel with hundreds of thousands of miles on the clock- and the costs of maintenance are considerable at these levels, trust me. The Ford Crown Vic is fool-proof at any price in comparison.

Will the city's cab fleets, many of which are independently owned and operated through the medallion system be willing to absorb the costs of a Mercedes-Benz?

Sadly, I don't think so.

About twelve years ago I was working in the city and had read that the TLC was willing to "try" other cab alternatives. Supposedly two Mercedes-Benz E300Ds from the late 1990's were painted yellow.

I personally saw one of these cars but have yet to have heard much anything about it since. But I did come across this old 1997 article by The New York Times here. The times, the Mercedes diesel, the prices and the rules have changed a bit since.

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