Automakers selling new vehicles in the United States have an additional incentive to develop more frugal powertrains. On Sunday, the National Highway Traffic Safety Administration (NHTSA) announced it would reinstate a significant increase in fines for vehicles 2019 and newer that don't meet minimum Corporate Average Fuel Economy (CAFE) standards.
The rate more than doubles, going from $5.50 to $14 for 2019-2021 model-year vehicles. For 2022, it increases to $15. That doesn't sound like much, but the fine is applicable for every 0.1 mpg under the mileage threshold. Take that figure and multiply it by the number of non-compliant vehicles sold, and it can up very quickly. The increase could cost Stellantis $572 million, according to Reuters, and that's just one company. In 2016, automakers argued the increase could cost over $1 billion.
