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FCA gets CAFE break

by David Zatz on

When California and Federal regulators got together with automakers to set ambitious fuel-economy goals, their plans were given sharp teeth: fines that would sharply increase starting in 2015.

Now, the NHTSA has decided to hold off on the increased fines, pushing them all the way back to 2019. That’s good news for FCA US, which has had the hardest time of the Big Three.  The penalty for not meeting 2015-2018 model year standards will drop from $14 down to $5.50 per tenth-of-a-mile-per-gallon deviation from the rule, multiplied by annual sales.

FCA US sold over two million cars and trucks in 2015 and 2016 alike, making any reduction in penalties quite sizable.

The NHTA also said it would start a formal process on dealing with differences between the EPA’s greenhouse gas standards and their own fuel economy standards.

Automakers have all finished compliance plans through the 2018 model year.

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