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Exclusive US Boost fines for automakers that fail to follow fuel economy rules in Tesla’s win

Traffic is seen on a freeway ahead of the July 4th holiday in New York
FILE PHOTO: Traffic is seen on a freeway in New York, the United States, on July 2, 2021. REUTERS/Eduardo Munoz

March 27, 2022

WASHINGTON (Reuters) – The U.S. National Highway Traffic Safety Administration (NHTSA) has reintroduced increased penalties for automakers that fail to meet fuel efficiency requirements in recent years, a win for Tesla that other automakers hundreds of millions of dollars or a document viewed by Reuters could cost more.

President Donald Trump’s administration, in its final days in January 2021, delayed a 2016 regulation that more than doubled penalties for automakers that fail to meet Corporate Average Fuel Economy (CAFE) requirements beginning with the 2019 model year. NHTSA’s final rule, viewed by Reuters, reinstates the higher penalties and further strengthens them for the 2022 model year.

Automakers protested the 2016 fine increase, warning it could cost the industry at least $1 billion a year. The price hike, for example, is expected to cost Chrysler’s parent Stellantis hundreds of millions of dollars.

The head of a trade group representing nearly every major automaker except Tesla said Sunday it would be a “better outcome” if the penalties were “invested in electric vehicles, batteries and charging infrastructure, rather than disappearing into the Treasury Department’s general fund.”

(Reporting by David Shepardson; Editing by Cynthia Osterman)

https://www.oann.com/exclusive-u-s-boost-fines-for-automakers-not-meeting-fuel-economy-rules-in-tesla-win/?utm_source=rss&utm_medium=rss&utm_campaign=exclusive-u-s-boost-fines-for-automakers-not-meeting-fuel-economy-rules-in-tesla-win Exclusive US Boost fines for automakers that fail to follow fuel economy rules in Tesla’s win

DUSTIN JONES

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