Fuel Economy Penalties Reinstated In U.S. After Being Paused Since 2019 | Carscoops

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Fuel Economy Penalties Reinstated In U.S. After Being Paused Since 2019 | Carscoops
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Fuel Economy Penalties Reinstated In U.S. After Being Paused Since 2019 | Carscoops carscoops

The National Highway Traffic Safety Administration announced that it would be reinstating a planned increase to fines for automakers that do not meet corporate average fuel economy standards set by the government. The rules were paused by the Trump administration.but is likely to cost automakers whose vehicles pollute too much millions. The decision “increases the accountability of manufacturers for violating the nation’s fuel economy standards,” the NHTSA said.

Now, the rule is set to rise again in 2022 to $15, which is still lagging behind inflation. According to the, an item that cost $5.00 in 1975, when the penalties were instated, would have cost $23.76 in 2019 and $26.37 in 2022. Still, automakers have protested the increase, arguing that the money could be better spent on developing new EVs rather than going into the public coffers. The government, though, has announced a massivethat would see charging stations installed across the country, among other measures.

The NHTSA estimated that for the 2019 model year, automakers would be charged $294 million at the new rate, rather than the $115.4 million that they would have been charged under the old rate, perThe decision may have a particular impact on Chrysler’s parent company, . Estimates suggest that the rate increases may end up costing the company $572 million when the penalties are all accounted for.

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