Stellantis, the parent company of Chrysler, paid a total of $190.6 million in penalties this year for failing to meet U.S. fuel economy standards, according to official data and statements from the automaker. The National Highway Traffic Safety Administration (NHTSA) disclosed in its annual report that the company made two major payments: $78.3 million in March and $112.3 million in June, covering shortfalls from the 2019 and 2020 model years. Since 2018, Stellantis has paid $773.5 million in cumulative fines for similar violations.
The company confirmed the figures to Reuters on Tuesday but chose not to elaborate further. Under a law enacted during former President Donald Trump’s administration, automakers are no longer subject to penalties for non-compliance with fuel efficiency regulations starting from the 2022 model year. This change effectively removes financial consequences tied to the Corporate Average Fuel Economy (CAFE) standards established in 1975.
The shift in policy reflects broader regulatory adjustments in Washington aimed at reducing burdens on manufacturers producing internal combustion engine vehicles. In June, NHTSA supported this direction by asserting that the previous administration under President Joe Biden overstepped its regulatory authority by projecting widespread adoption of electric vehicles when setting fuel economy benchmarks.
As a result, the revised federal rule has relaxed future requirements. The agency estimates that the entire automotive sector will incur no more than $1.83 billion in penalties collectively through 2031.
— news from Reuters
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Stellantis paid $190.6 million in US fuel economy penalties this year, agency says
Aug 26 (Reuters) – Chrysler-parent Stellantis paid $190.6 million in penalties this year for not meeting U.S. fuel economy requirements, according to a government report and the Italian-U.S. automaker. n nThe National Highway Traffic Safety Administration said in an annual report that Stellantis paid $112.3 million in June and $78.3 million in March in payments for shortfalls from the 2019 and 2020 model years. In total, Stellantis has paid $773.5 million since 2018. n nSign up here. n nLast month, NHTSA told automakers they face no fines for failures to meet fuel efficiency rules dating back to the 2022 model year under a law signed by President Donald Trump. n nStellantis confirmed the figures to Reuters Tuesday but declined further comment. n nTrump’s tax and budget bill ends penalties for not meeting Corporate Average Fuel Economy rules under a 1975 energy law. n nThe fuel economy penalty change is one of a number made by Washington to make it easier for automakers to build gasoline-powered vehicles. n nIn June, NHTSA paved the way for looser U.S. fuel economy standards by declaring that former President Joe Biden’s administration exceeded its authority by assuming high uptake of electric vehicles in calculating rules. n nThe final rule adopted last year eased requirements and the agency said the industry would face no more than $1.83 billion in fines through 2031. n nReporting by David Shepardson Editing by Tomasz Janowski