The US government’s proposal to tighten fuel economy standards by 2032 could cost major automakers billions.
DrThe US government’s proposal to tighten fuel economy standards by 2032 could cost major automakers billions. The level of penalties for non-compliance with the proposed average fuel economy (CAFE) standards is “alarming,” according to a letter to the Department of Energy written by the American Automotive Policy Council (AAPC), Chrysler Motors’ parent company Stellantis and General Motors. Represents Ford. GM should therefore expect payments of $6.5 billion, and Stellantis about $3 billion. According to the letter, Ford faces fines of about $1 billion, while Volkswagen must pay more than all foreign automakers by more than $1 billion. GM and Stellantis declined to comment beyond the letter. Ford and VW did not initially respond. According to General Motors, requiring automakers to reach a 67 percent share of electric vehicles by 2032 will not be enough to meet the CAFE program. The three Detroit automakers will face costs of $2,151 per vehicle, compared to an average of $546 per vehicle sold by other automakers, the letter said. Politicians are therefore “rewarding carmakers who resist the transition to a purely electric future.” Recently, Stellantis and GM paid a total of $363 million in CAFE penalties for not adhering to consumption limits.
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