Skip to site menu Skip to page content

Daily Newsletter

04 October 2023

Daily Newsletter

04 October 2023

US vehicle makers could face hefty fuel economy fines under new CAFE proposals

Detroit Three group says proposed standards would reward automakers resisting EV transition

Dani Cole October 04 2023

Proposals under President Joe Biden’s administration to tighten US fuel economy standards through to 2032 would reportedly cost General Motors $6.5 billion and Stellantis $3 billion in fines.

The details were outlined in a letter written by trade group the American Automotive Policy Council (AAPC) to the Department of Energy (DOE), Reuters reports. The council represents the Detroit Three automakers Ford, Stellantis and General Motors.

The fines relate to expected penalties for not meeting proposed Corporate Average Fuel Economy (CAFE) targets.

CAFE regulations were first enacted by Congress in 1975, following the 1973-74 Arab Oil Embargo to improve the average fuel economy of cars and light trucks produced for sale in the US.

Reuters reports that Ford faces a separate $ 1 billion in penalties, and Volkswagen faces upwards of $1 billion.

The letter from the AAPC stated that the policy “would reward those auto manufacturers resisting the transition to a fully electric future the most.”

It is estimated that the auto industry “as a whole” could face $14 billion in CAFE fines.

Metaverse has the potential to disrupt all stages of the automotive value chain

Although the impact of the metaverse on the automotive industry is minor so far, this technology promises to make digital media experiences more immersive, inclusive, and accessible than today. Its impacts will be particularly felt by OEMs and sales and marketing. As the light vehicle market becomes increasingly saturated, investment will be redirected towards improving in-car media and safety features, leading to an increasingly connected vehicle network.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close