US automakers exempted from fines for fuel efficiency non-compliance
This move, part of a tax and budget bill, puts an end to fines under the Corporate Average Fuel Economy (CAFE) rules established by a 1975 energy law.
In a letter obtained by Reuters, the National Highway Traffic Safety Administration (NHTSA) has informed automakers that it is re-evaluating its fuel economy regulations. The move aligns with other measures from Washington aimed at easing the production of gasoline vehicles and increasing the cost of electric vehicle (EV) sales.
In the past, non-compliance with US fuel economy requirements has led to significant penalties for automakers.
Stellantis, the parent company of Chrysler, incurred a $190.7m civil penalty for the 2019 and 2020 model years, adding to around $400m in fines from 2016 to 2019.
Previously, General Motors (GM) paid $128.2m for 2016 and 2017.
President Trump's recent actions also include nullifying California's goal to phase out gasoline-only vehicle sales by 2035.
Meanwhile, Tesla has benefited from the situation, earning $2.8bn globally from regulatory credits through the sale of zero-emission EVs.
The legislation signed this month by Trump states that vehicle fines will be eliminated for any year where NHTSA has not completed its rulemaking process.
Center for Biological Diversity's Safe Climate Transport Campaign director Dan Becker expressed disapproval of the decision, stating: "The Trump administration is reaching back in time to give an obscene gift to pollution law violators GM and Stellantis at the expense of the American taxpayer.
'The automakers lobbied hard for this 'get out of jail free' card. They get hundreds of millions in fines cancelled."
GM and Stellantis have yet to respond to the development. Senate Republicans estimates that the law could 'save automakers' around $200m.
The NHTSA under President Joe Biden proposed in 2023 to increase fuel economy standards through 2032, which would have cost the industry an estimated $14bn in fines, including $6.5bn, $3bn, and $1bn for GM, Stellantis, and Ford Motor, respectively. However, the final rule adopted last year significantly reduced these requirements, capping potential industry fines at $1.83bn from 2027 through 2031.
"US automakers exempted from fines for fuel efficiency non-compliance" was originally created and published by Just Auto, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Washington Post
a minute ago
- Washington Post
Lumbee tribe of North Carolina sees politics snarl recognition by Washington
Since the 1980s, the Lumbee Tribe has lobbied Congress to acknowledge it as a sovereign nation. There was renewed hope last year when both major party candidates in the presidential election promised to intervene on behalf of the Lumbee . In his first week in office, President Donald Trump appeared to be making good on his endorsement . He issued an executive order directing the Interior Department to create a plan for federal recognition, a move Lumbee Chairman John Lowery called a 'significant step forward.' But several months later, it remains unclear if Trump will take further action.
New York Times
a minute ago
- New York Times
Quote of the Day: Still Strange, Meme Stocks Are Back
'I literally felt like I went to the casino to put $2,500 on black roulette.' KEVIN GAO, who got in on this week's sudden buying of meme stocks, investing about $2,500 in shares of Opendoor. Five minutes after his purchase, the stock's value slipped. Four years earlier, he lost $10,000 on GameStop.
Washington Post
a minute ago
- Washington Post
Statehouses are the public's houses, but the fight for potty parity continues
For female state lawmakers in Kentucky, choosing when to go to the bathroom has long required careful calculation. There are only two bathroom stalls for women on the third floor of the Kentucky Statehouse, where the House and Senate chambers are located. Female legislators — 41 of the 138 member Legislature — needing a reprieve during a lengthy floor session have to weigh the risk of missing an important debate or a critical vote.
