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U.S. Hikes Fines for Fuel Economy Shortfall
In August carmakers will face dramatically stiffer fines for failing to meet U.S. fuel economy targets, starting retroactively with 2015 models.
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In August carmakers will face dramatically stiffer fines for failing to meet U.S. fuel economy targets, starting retroactively with 2015 models.
The fines from the National Highway Traffic Safety Administration will jump to $14 from $5.50 for each 0.1 mpg shortfall, multiplied by the number of vehicles sold, Automotive News reports. Critics say the current penalty structure makes it cheaper for carmakers to miss the targets and pay a fine than to engineer their vehicles to meet the goals.
The new fee structure was published on July 5 in the Federal Register. The Alliance of Automobile Manufacturers describes the hike in penalties “draconian.” AAM predicts prices will rise for fuel economy credits carmakers can buy from manufacturers with high fuel economy averages.
NHTSA’s new penalty fee was prompted by a law that requires federal agencies to adjust their civil penalties to reflect inflation and to ensure the amounts charged act as a deterrence to noncompliance.
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