WASHINGTON DC – The proposal by U.S. President Joe Biden’s administration to hike fuel economy standards through 2032 would cost General Motors $6.5 billion in fines and Chrysler parent Stellantis $3 billion, according to a letter seen by Reuters.
The American Automotive Policy Council, representing GM, Stellantis and Ford Motor said in a letter to the U.S. Energy Department on Friday that the size of the expected penalties for not meeting proposed Corporate Average Fuel Economy (CAFE) requirements are “alarming.”
Ford separately faces about $1 billion in penalties, the letter said, while Volkswagen faces upwards of $1 billion, the most among foreign automakers.
GM and Stellantis declined to comment beyond the letter. Ford and VW did not immediately comment.
The previously unreported letter asked the Department of Energy (DOE) to reconsider its plan to revise the “Petroleum Equivalency Factor” that will result in “disproportionately higher compliance costs” for U.S. automakers.
Detroit’s three automakers face $2,151 per vehicles in compliance costs compared with $546 per vehicle on average sold by other automakers, the letter said, and the policy “would reward those auto manufacturers resisting the transition to a fully electric future the most.”
The National Highway Traffic Safety Administration (NHTSA) in July proposed hiking CAFE standards by 2032 to a fleet-wide average of 58 miles per gallon by boosting requirements 2% per year for passenger cars and 4% annually for pickup trucks and SUVs.
To read more, click on Reuters
