zzdcar
Home
/
Reviews
/
Culture
/
Stellantis And GM Must Pay $363 Million For Not Hitting U.S. Fuel Economy Requirements
Stellantis And GM Must Pay $363 Million For Not Hitting U.S. Fuel Economy Requirements-April 2024
2024-02-19 EST 22:11:56

Image for article titled Stellantis And GM Must Pay $363 Million For Not Hitting U.S. Fuel Economy Requirements

and are reportedly on the hook for $363 million in because both automakers failed to meet requirements for a handful of model years. According to , the “record-setting” penalties include $235.5 million for Stellantis because of 2018 and 2019 model year vehicles as well as $128.2 million for GM for 2016 and 2017 model year vehicles. The penalties have been set by the National Highway Traffic Safety Administration, the entity in charge of standards.

The outlet reports that both GM and Stellantis paid their respective penalties between May and December, and this is apparently the first time in three years the agency has collected f penalties from OEMs.

Stellantis was quick to blame the last guys – FCA – for the penalty, reportedly saying the penalty “reflects past performance records before the formation of Stellantis, and is not indicative of the company’s direction.” It isn’t the automaker’s first foray into being penalized for missing CAFE standards. It previously had to pay NHTSA $156.6 million for the 2016 and 2017 model years.

“[As] we work towards the goal of a zero-emission future, we may use a combination of credits from prior model years, expected credits from future model years, credits obtained from other manufacturers, and payment of civil penalties to comply with increasingly stringent CAFE regulation.” It seems a bit upset.

I suppose there’s a good reason for that, though. According to Reuters, GM hasn’t been fined a single time before this in the 40-year history of the CAFE program. The automaker reportedly had plans to use credits to meet its compliance shortfalls for the 2016 and 2017 model year, but in the end it opted to just pay the penalties.

This news comes as NHTSA reportedly plans to propose more for 2027 and beyond. in projected fleet average emissions of 2026 requirements by 2032. Automakers are gonna have to get to work fast.

For some perspective on how GM and Stellantis are performing fuel economy-wise, reportedly said that Stellantis had the lowest real-world fuel economy among all major automakers at just 21.3 mpg on average in 2021. GM was second lowest at 21.6 mpg, so congrats to them.

Reuters says that in March of 2022, NHTSA added a sharp increase in penalties for automakers whose vehicles didn’t meet fuel economy requirements starting in 2019.

For the 2019 to 2021 model years, the fine is $14, up from $5.50, for every 0.1 mile per gallon new vehicles fall short of required fuel-economy standards, multiplied by the number of non-complying vehicles sold. For the 2022 model year, the figure rose to $15.

Automakers protested the penalty hike in 2016, warning it could raise industry costs by at least $1 billion annually, including boosting the value of compliance credits sold by Tesla (TSLA.O) and others.

In April of last year, NHTSA sharply increased fuel economy standards. It was a reversal of former President Donald Trump’s brilliant move to roll back U.S. regulations aimed at improving gas mileage. Now, it has raised fuel economy requirements by 8 percent for both 2024 and 2025 model years, and will raise it a further 10 percent for 2026.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Culture
Mitsubishi Might Go Free
Mitsubishi Might Go Free
The most incomprehensible pairing in the auto industry may be coming to an end, GM dealers are OK with less inventory and Honda is streamlining. All that and more in for November 16, 2020. I’m not sure if there’s ever been a tie-up in the car world more unnecessary...
Apr 6, 2026
The R34 GT-R's Multifunction Display Was Secretly Its Coolest Feature
The R34 GT-R's Multifunction Display Was Secretly Its Coolest Feature
Though it may be hard to recall today, the world was fascinated by and enamored with the idea of computers in our cars for a great many years. In the days before GPS was commonly offered across various makes and models, and certainly before you could plug in your...
Apr 6, 2026
Tesla Set To Join S&P 500, Boosting Share Price Again
Tesla Set To Join S&P 500, Boosting Share Price Again
The Standard & Poor’s 500 has long been considered the standard bearer of the health of the United States economy. This index measures the stock performance of 500 large, publicly traded companies in the U.S. On Monday, the index announced it would be adding Tesla to its list of...
Apr 6, 2026
QOTD: What's The Best Concept Car That Never Made It To Production?
QOTD: What's The Best Concept Car That Never Made It To Production?
If you’ve been following the headlines over the past week, you know that . Stuttgart trotted out a batch of its top-secret prototypes to promote an upcoming book, Porsche Unseen. So far, 14 vehicles have been brought to light as part of the project, ranging from a van to...
Apr 6, 2026
QOTD: Which State Has The Best License Plates?
QOTD: Which State Has The Best License Plates?
If you have to bolt something on to your car, you want it to be stylish, or at the very least, interesting. While no one from the state is going to force you to strap or rad rally lights to your ride, they will make you display a license...
Apr 6, 2026
Tesla Never Really Had Its Heart In The $35,000 Model 3
Tesla Never Really Had Its Heart In The $35,000 Model 3
I’m old enough to remember when the Tesla Model 3 was supposed to be the affordable Tesla, the one that , except we only ever really saw the $35,000 Model 3 in . Now it looks as if Tesla might soon be moving on from the $35,000 Model 3...
Apr 6, 2026
Copyright 2023-2026 - www.zzdcar.com All Rights Reserved