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The
Alliance for Automotive Innovation, which represents General
Motors, Toyota Motor, Volkswagen, Hyundai and others, said the
National Highway Traffic Safety Administration Corporate Average
Fuel Economy proposal "exceeds maximum feasibility" and that the
agency projects "manufacturers will pay over $14 billion in
non-compliance penalties between 2027 and 2032".
The fines would impact one in every two light trucks and one in
every three passenger cars in 2027-2032, the group added.
A separate document viewed by Reuters said the Detroit Three -
GM, Ford Motor and Chrysler-parent Stellantis - would face about
$10 billion in CAFE fines in that period.
Across the world, efforts to reduce vehicle emissions and shift
to electric vehicles are meeting resistance for reasons of cost.
European Union ministers on Monday agreed to dilute a proposal
on new vehicle emissions.
A NHTSA spokesperson said the estimate cited by automakers
represents the agency forecast and is "consistent with our
statutory obligations".
The spokesperson also noted automakers "are free to use electric
vehicles to comply and avoid penalties altogether".
In June, Reuters reported Stellantis and GM paid a total of $363
million in CAFE fines for failing to meet U.S. fuel economy
requirements for prior model years.
The record-setting penalties include $235.5 million for
Stellantis for the 2018 and 2019 model years and $128.2 million
for GM covering 2016 and 2017.
"The number of non-compliant vehicles and manufacturers
projected exceeds reason and simply put, will increase costs to
the American consumer with absolutely no environmental or fuel
savings benefits," the auto group said.
It added the "projected $3,000 average price increase over
today’s vehicles is likely to decrease sales and increase the
average age of vehicles on our roads.
The criticism is similar but not identical to concerns raised
about the Environmental Protection Agency's proposal that would
require 67% of new vehicles to be electric by 2032. The auto
group in June called the EPA proposal "neither reasonable nor
achievable." Toyota called the EPA proposal stringency
requirements "extreme and outside historical norms."
(Reporting by David Shepardson; editing by Barbara Lewis)
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