Sunday, December 3, 2023
News GM, Stellantis Could See Massive Fines if Fuel Economy Targets Increased: Report

GM, Stellantis Could See Massive Fines if Fuel Economy Targets Increased: Report

Automakers say they could face big fines with new fuel rules

  • Automaker-run lobby group says two automakers heavily targeted

  • Assumes nearly $10b in fines by 2032

A federal proposal to boost fuel economy standards through the next decade could cost Stellantis and General Motors $9.5B in fines. At least that’s what a group representing the Detroit Three has said.

The letter comes from the American Automotive Policy Council (via Reuters), a group that represents Ford, GM, and Stellantis. The group is a trade group that has been representing the interests of those automakers since it was formed in 2009.

According to the Reuters report, the letter taht the AAPC sent to the U.S. Department of Energy calls the expected fines “alarming.” Ford would face $1B under the proposals, with VW also seeing $1B in fines.

The group claims that under new average fuel economy standards changes, the Detroit Three could face $2,151 per vehicle in compliance costs, versus a $546 average for other automakers. The NHTSA has proposed hikiung corporate average fuel economy standards by 2 percent per year for passenger cars through 2032, and 4 percent for pickups and SUVs. Automakers dealing almost exclusively in pickups and SUVs, like the Detroit Three, would be more affected by this.

The Department of Energy is also looking at revising how it calculates how EVs convert to gasoline efficiency for the program. The DOE has said that giving too much credit for EVs can actually make fuel economy worse because it allows gas vehicles to use more fuel without penalty.


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