Washington — General Motors Co. and Stellantis NV paid $363 million in fines collectively in 2022 and 2023 for failing to meet U.S. fuel economy standards in previous years.
Stellantis was fined $235.6 million for model years 2018 and 2019 and GM was fined $128.2 million for model years 2016 and 2017, according to data released by the National Highway Traffic Safety Administration and first reported by Reuters.
They are the largest fines an automaker has ever paid under the Corporate Average Fuel Economy (CAFE) program, which has recorded penalties dating to 1985.
It also marks the first time GM has paid a fine, according to NHTSA records.
GM spokesperson Jeannine Ginivan said in a statement that the company is committed to an all-electric future and “has charted a path to eliminate tailpipe emissions from new light-duty vehicles by 2035.”
“As we work towards the goal of zero-emissions 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 regulations,” she said.
Stellantis spokesperson Eric Mayne said the penalties are “not indicative of the company’s direction” and reflect past performance recorded before Stellantis was formed (the penalties are attributed to Fiat Chrysler, which merged with French automaker Groupe PSA to form Stellantis in 2021.)
“Stellantis is investing $35 billion to develop electrified vehicles and related software to accommodate a global product offensive that includes the launch of 25 U.S.-market BEVs by 2030,” he said. “Further, we are aspiring to a carbon-neutral future with our commitment to carbon net-zero status by 2038.”
CAFE standards dictate how fuel efficient manufacturers must make vehicles. Automakers can pay a civil penalty to meet fuel economy standards if their fleetwide average does not meet the regulations. They can also use credits, earned primarily by exceeding regulations in previous years, to meet the standards.
NHTSA increased fuel economy standards in 2022, bumping up requirements from an average of 28 miles per gallon to 40.
Those standards are expected to increase again in an imminent rulemaking for model years 2027 and beyond. In April, EPA unveiled the “strongest ever” tailpipe emissions standards that call for a 56% reduction in emissions for model years 2027 to 2032.
NHTSA significantly bumped up civil penalties for violating fuel economy standards in March 2022. For more than two decades — model years 1997 to 2019 — the civil penalty rate was $5.50 per 0.1 mpg short of the standard, multiplied by the number of noncompliant vehicles sold. It jumped to $14 for model years 2019 through 2021, $15 for model year 2022, and to $16 for model year 2023 and beyond.
rbeggin@detroitnews.com
Twitter: @rbeggin