The US government plans to tighten fuel economy standards. Failure to comply will result in heavy fines.
The U.S. government’s proposal to tighten fuel economy standards by 2032 could cost major automakers billions. A letter from the American Automobile Policy Council (AAPC), General Motors (GM), Chrysler parent Stellandis and Ford Motor Company says the level of fines for failing to meet proposed Average Fuel Economy (CAFE) targets is “dangerous”. Ministry of Energy.
So General Motors should expect to pay 6.5 billion dollars (6.14 billion euros), Stellandis about three billion. According to the letter, Ford faces a fine of about one billion dollars, while Volkswagen must pay more than one billion dollars to all foreign car manufacturers. GM and Stellantis declined to comment beyond the letter. Ford and VW did not immediately respond to Reuters’ request for comment.
According to GM, the need for automakers to achieve a 67 percent electric vehicle share by 2032 may not be enough to meet the CAFE plan. The three Detroit automakers face costs of $2,151 per vehicle, compared to an average of $546 per vehicle sold by other automakers, the letter said. So politicians are “rewarding the majority of car manufacturers who resist the transition to an all-electric future.”
Automakers buy credits or pay fines if they don’t meet CAFE requirements. In June, Stellandis and GM paid a total of $363 million in CAFE penalties for failing to meet U.S. fuel economy targets in previous model years, Reuters reported. (APA/Reuters)