The US will severely penalize car manufacturers that do not meet fuel standards
The US National Traffic Safety Administration (NHTSA) has imposed increased fines on car manufacturers that do not meet the fuel consumption regulations for vehicles from 2019 to the present.
NHTSA said the decision “increasing liability plus manufacturers for violations of national fuel-economy standards” and that increasing the penalty would incentivize manufacturers to improve fuel economy. .
Previously, the administration of former president Donald Trump in the last days of his term, in January 2021, delayed a new regulation in 2016 about imposing double fines on car manufacturers that do not meet fuel consumption standards. CAFE (Corporate Average Fuel Economy) data since model year 2019.
NHTSA’s regulation was signed on March 24 and will take effect 60 days after being published on the US government portal.
Accordingly, the 2019-2021 models will have a fine of 14 USD, up from 5.5 USD, for every 0.1 mile/gallon that exceeds the fuel consumption standard, and multiplied by the number of vehicles that do not meet the standards. request has been marketed. For cars of the 2022 model year, the higher penalty is 15 USD.
In the US, the current average fuel consumption standard for passenger cars is 8.55 liters per 100 km. The government’s goal is to impose a standard of 4.3 liters per 100 km by 2025. Increasingly strict regulations aim to improve the fuel economy of cars, while reducing emissions – the main factor causing the effect. Greenhouse.
In 2016, automakers opposed the proposed increase in fines and warned the cost of the industry would increase to at least a billion dollars a year. However, automakers can avoid fines by buying back limits from rivals, typically from electric car manufacturers.
Under President Barack Obama, higher penalties were introduced starting in 2019, but the Trump administration set an effective date of 2022 after the court decision.
According to NHTSA, the new rate for 2019 models will leave automakers with $294 million in fines, a significant increase from $115.4 million at the old rate. The NHTSA added that automakers planning between 2019 and 2021 “thought the penalty wouldn’t increase so they did it at their own risk.”
On March 27, representatives of a group of major automakers (except Tesla) argued that the fines should be invested in electric vehicles, batteries and charging infrastructure rather than disappearing into the general fund. of the Ministry of Finance.
This new decision could cost gas car companies like Stellantis hundreds of millions of dollars. Last weekend, Stellantis wanted to work with the administration and Congress to allow agencies to use the proceeds of the breach to increase investment in the technologies and infrastructure needed to drive a market. Powerful electric vehicle in the United States.
Meanwhile, environmental groups called on the administration to impose a higher penalty frame, noting that fines for failing to meet US fuel economy requirements have lost nearly 75% of the price. The initial value because the fine was increased only once, from $5 to $5.50 in 1997, since 1975.
Recently, President Joe Biden talked about VinFast will build a $4 billion battery and electric vehicle manufacturing facility in North Carolina that is expected to create more than 7,000 jobs. “This is the latest example that our economic strategy has worked,” US President Joe Biden personally tweeted congratulations to VinFast on his official Twitter account on March 30.
In addition to mentioning VinFast, Mr. Biden said recently other companies such as GM, Ford and Siemens have also announced they will invest back in the US and create more jobs. “Efforts to build a clean energy economy are encouraging companies to produce more in America, rebuilding America’s supply chains, and ultimately reducing costs for the American people,” Biden said.
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