2023-10-03 04:49:17 ET
General Motors ( NYSE: GM ) and Chrysler maker Stellantis ( NYSE: STLA ) will likely face around $9.B in overall fines under the Biden administration's proposal to hike fuel economy standards through 2032, Reuters reported citing a trade group's letter.
GM ( GM ) is expected to face $6.5B in fines, while Stellantis ( STLA ) could be on the hook for $3B, according to a letter by the American Automotive Policy Council - which represents Detroit's Big Three - to the U.S. Energy Department.
The group said the potential fines for not meeting the proposed Corporate Average Fuel Economy ( CAFE ) requirements are "alarming."
Ford Motor ( F ) could face ~$1B in penalties, while Volkswagen ( OTCPK:VWAGY ) may have to shell out over $1B.
GM ( GM ), Stellantis ( STLA ) and Ford ( F ) face $2.15K per vehicle in compliance costs, much higher than the $546 per vehicle on average sold by other automakers.
The proposed policy "would reward those auto manufacturers resisting the transition to a fully electric future the most," the letter said .
If automakers are unable to meet CAFE requirements, they can buy credits or pay penalties. GM ( GM ) and Stellantis ( STLA ) previously paid $363M in CAFE fines.
More on fuel economy standards
- U.S. proposes to boost fuel economy standards for new vehicles
- EPA proposes aggressive new 'clean vehicle' standards
For further details see:
GM, Stellantis on hook for $9.5B in fines under fuel economy proposal - report