Home Automotive Stellantis, GM pay $363 million in U.S. fuel economy penalties

Stellantis, GM pay $363 million in U.S. fuel economy penalties

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Documents obtained by Reuters on Friday show that Sterantis and General Motors paid civil fines totaling $363 million for failing to meet U.S. fuel economy requirements for previous models. became.

According to the U.S. Highway Traffic Safety Administration (NHTSA), which administers the Corporate Average Fuel Efficiency (CAFE) program, the record fines included $235.5 million for the 2018 and 2019 model years for Stelantis and $235.5 million for 2016 and 2017 for GM. That includes $128.2 million for the year. .

Sterantis, which also owns brands such as Fiat and Peugeot, said the penalty “reflected past performance recorded prior to the founding of Sterantis and does not indicate the company’s direction.”

Stellantis has previously paid a total of $156.6 million in penalties for the 2016 and 2017 models.

GM said Friday, “We are working toward our future zero-emissions goal and will continue to use credits from previous model years, expected credits from future model years, credits acquired from other manufacturers, and to comply. of civil fine payments may be used in combination.” Cafe regulations are getting stricter and stricter. “

GM, which sells Chevrolet, Buick, GMC and Cadillac vehicles in the United States, had never paid a fine in the CAFE program’s 40-year history. NHTSA said the company originally planned to use the credits to make up for the lack of compliance, but chose to pay the fine.

Records show GM and Stellatis were paid between December and May. It is the first time in three years that the agency will collect fines related to fuel consumption.

In April 2022, NHTSA said it estimated that there would be 11 cases between 2018 and 2021 that would “require the payment of significant civil fines,” but did not disclose which automakers were involved. rice field.

The disclosure comes in response to the Environmental Protection Agency’s April proposal to reduce average vehicle emissions by 56% against 2026 requirements by 2032. It preceded NHTSA’s plans to propose standards soon.

rapid increase

of EPA Said Stellantis in December ‘s real fuel economy averaged 34.3 miles per gallon in 2021, the lowest among major automakers, and GM was the second lowest at 21.6 mpg.

In March 2022, NHTSA reinstated significantly increased fines for automakers whose vehicles do not meet fuel economy requirements for 2019 and beyond.

For 2019-2021 model years, the fine increases from $5.50 to $14, multiplied by the number of offending vehicles sold, for each 0.1 mile that a new vehicle falls below the required fuel economy standard. For the 2022 model, that amount has risen to $15.

Automakers have protested the 2016 fine increase and warned it could add at least $1 billion a year to industry costs, including an increase in the value of compliance credits sold by Tesla. TSLA.O others.

Automakers that produce vehicles with higher fuel efficiency than they need can sell credits to automakers that do not meet the CAFE rules.

Stellantis announced that it has taken additional provisions of €660 million ($709 million) as a result of increased NHTSA fines.

In April 2022, NHTSA significantly raised fuel efficiency standards, reversing former President Donald Trump’s withdrawal of US regulations aimed at improving fuel efficiency. The organization has increased fuel efficiency requirements by 8% for both model years 2024 and 2025, and by 10% for 2026.

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