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Stellantis and GM to pay $363 million for not meeting US fuel economy requirements


Stellantis And common engine is said to be struggling for $363 million in civil penalty because both automakers fail to meet American fuel economy required for a model year number. Based on Reuters“record-setting” penalties include $235.5 million for Stellantis for 2018 and 2019 vehicles as well as $128.2 million for GM for 2016 and 2017 vehicles. by the National Highway Traffic Safety Administration, the agency in charge Business average fuel economy standard.

The outlet reported that both GM and Stellantis paid their respective fines between May and December, and this is apparently the first time in three years that the agency has collected fines.energy saving penalties from OEMs.

Stellantis was quick to blame the last ones – the FCA – for the penalty, which is said to be a penalty that “reflects past performance performance prior to the founding of Stellantis and is not indicative of the direction the company is taking.” ty.” This is not the first foray by the automaker fined for its lack of CAFE standards. Before that, it had to pay NHTSA $156.6 million for 2016 and 2017 models.

GM told Reuters “[As] we work towards a zero-emissions future, we can use a combination of credits from previous model years, projected credits from future model years, credits received from other manufacturers and payment of civil penalties for compliance with increasingly stringent CAFE regulations. “It seems a little uncomfortable.

I suppose there’s a good reason for that, though. According to Reuters, GM has never been fined before in the 40-year history of the CAFE program. The automaker is said to have planned to use the credits to meet compliance deficiencies for 2016 and 2017 models, but ultimately opted to pay only the fine.

This news comes as NHTSA plans to propose more strict fuel economy standards for 2027 and beyond. EPA is also proposing a 56 percent reduction Vehicle fleet average emissions are expected to be 2026 claimed by 2032. Automakers will have to get to work fast.

For some perspective on how GM and Stellantis are doing fuel economy wise, EPA The report says Stellantis has the lowest actual fuel economy among all major automakers with an average of just 21.3 mpg in 2021. GM is second lowest at 21.6 mpg, as So congratulations to them.

Reuters reported that in March 2022, NHTSA sharply increased fines for automakers whose vehicles failed to meet fuel economy requirements starting in 2019.

For models from 2019 to 2021, the fine is $14, up from $5.50, for each 0.1 mile per gallon of new vehicle that fails to meet the required fuel economy standards, multiplied by the number of vehicles sold. do not obey. For the 2022 model year, this increases to $15.

Automakers opposed raising the penalty in 2016, warning that it could increase the industry’s costs by at least $1 billion annually, including increasing the value of credits compliant applications sold by Tesla (TSLA.O) and others.

In April last year, NHTSA sharply increased fuel economy standards. It was a stunning reversal of former President Donald Trump’s move to roll back US regulations aimed at improving gas mileage. It has now raised the fuel economy claim to 8% for both 2024 and 2025 models, and will increase it by 10% for 2026.

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