FCA Faces Fine for Missing Fuel Economy Goal

Fiat Chrysler Automobiles NV is being fined $79 million by the National Highway Traffic Safety Administration because its 2017 models failed to achieve their federal fuel economy requirements.

NHTSA says 12 of 17 other carmakers also fell short of their corporate average fuel economy targets in 2017 and had to purchase credits from thriftier companies to cover the shortfall, Reuters reports.

FCA’s fleet for the 2017 model year was supposed to average 33.8 mpg. But the company came in 1.5 mpg below that level, triple its deficit a year earlier.

NHTSA estimates that an even greater proportion of carmakers fell short of their CAFE targets in 2018 and 2019. The trend is being blamed on the massive market shift from relatively fuel efficient small sedans to thirstier SUVs and pickup trucks, such as the Ram 1500 (pictured).

The Trump administration is preparing to announce a plan later this year that will freeze fuel economy requirements next year rather than permit a sharp increase in CAFE targets through 2026 that was scheduled during the Obama era.

Carmakers, represented by the Alliance of Automobile Manufacturers, says it continues to advocate tougher but attainable fuel economy standards that “reflect marketplace realities.”