General Motors and Stellantis have paid a combined $363 million in fines for failing to meet U.S. Average Business Fuel Economy (CAFE) requirements in recent model years, Reuters Friday report.
The record amounts include $235.5 million paid by Stellantis for 2018 and 2019 model year fuel economy shortfalls and $128.2 million to GM in the 2016 and 2017 model years. according to the report. It cites records showing the GM and Stellantis penalties were paid in December and May.
Stellantis, which previously paid a total of $156.6 million in fines for the 2016 and 2017 model years, told Reuters the latest penalty “reflects past performance recorded prior to the founding of Stellantis and does not indicate the direction of the company.”
Real-world estimated fuel economy changes (from EPA’s 2022 Automotive Trends Report)
Stellantis was formed in 2021 from the merger of Fiat Chrysler Automobiles (FCA) and PSA Group. FCA used to depend on buying emissions credits from Tesla to offset its line of pickups and SUVs. In 2021, Stellantis said it There will be no need for Tesla emissions credits, at least in Europe. But EPA’s 2022 Automotive Trends Report shows that Stellantis ranks last among major U.S. automakers in real-world fuel economy, as of the 2021 model year.
GM told Reuters it still plans to use emissions credits, either savings or credits purchased from other automakers, under certain circumstances. But this time, the automaker chose to pay a civil penalty instead of using a credit—the first time it has paid a fine in the CAFE program’s 40-year history, according to the report.
Both automakers have big EV plans. Stellantis is driving the growth of several dedicated EV platforms for a variety of vehicles. GM is betting its future on electric vehicles, and in a bizarre example of cash flow, federal funds are being offered as a loan to Ultium battery manufacturing joint venture with LG.
Dodge Charger SRT Hellcat 2019
Right now, however, Stellantis and GM both depend on large truck sales, which Fuel economy has been lagging for decades and not improved at the same speed as passenger vehicles. The rule of fuel economy is steeper was finalized last year that will bring more hybrids and EVs sooner — and perhaps, fewer gas-guzzling muscle cars like Stellantis’ Dodge Hellcats — but it remains to be seen how much this will affect performance profitable pickup trucks.
The federal government is also considering higher fines for car manufacturers does not meet fuel economy standards. So the record fines that GM and Stellantis have to pay could soon be overtaken.
