2023-10-03 20:25:43
According to a letter seen by Archyde.com, US President Joe Biden’s administration’s proposal to raise fuel economy standards through 2032 would cost General Motors $6.5 billion in fines and Chrysler parent Stellantis. 3 billion dollars.
The American Automotive Policy Council, which represents GM, Stellantis and Ford Motor (FN), said in a letter to the U.S. Department of Energy on Friday that the size of expected penalties for failing to meet proposed Average Economy requirements of Corporate Fuel (CAFE) are “alarming.” «.
Ford separately faces regarding $1 billion in fines, the letter said, while Volkswagen faces more than $1 billion, the most among foreign automakers.
GM and Stellantis declined to comment beyond the letter. Ford and VW had no immediate comment.
The previously unpublished letter asked the Department of Energy (DOE) to reconsider its plan to revise the “Petroleum Equivalence Factor” that will result in “disproportionately higher compliance costs” for American automakers.
The three Detroit automakers face $2,151 per vehicle in compliance costs compared to $546 per vehicle on average sold by other automakers, the letter said, and the policy would “more reward those automakers that resist compliance.” transition to an all-electric future.
In July, the National Highway Traffic Safety Administration (NHTSA) proposed raising CAFE standards by 2032 to a fleet-wide average of 58 miles per gallon, increasing requirements by 2% annually for passenger cars and by 4% annual for trucks and SUVs.
The DOE wants to significantly revise the way it calculates petroleum-equivalent fuel economy ratings for electric vehicles in NHTSA’s CAFE program.
On Monday, the DOE said it sent letters to the Detroit Three and other automakers on Sept. 14 seeking comment on concerns regarding the effective date and risks that the vehicles would have problems with delivery times. .
“Encouraging the adoption of electric vehicles can reduce oil consumption, but giving too much credit for that adoption can lead to higher net oil use because it allows for lower fuel economy among conventional vehicles,” the DOE said in April.
A group representing nearly all major automakers said last week that the industry as a whole might face CAFE fines worth $14 billion.
NHTSA did not immediately comment Monday, but previously said the estimate cited by automakers is “consistent with our legal obligations,” adding that manufacturers “are free to use electric vehicles to comply and avoid penalties entirely.” ».
Automakers buy credits or pay fines if they cannot meet CAFE requirements. In June, Archyde.com first reported that Stellantis and GM paid a total of $363 million in CAFE fines for failing to meet U.S. fuel economy requirements for previous model years.
Source: Archyde.com
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