Stellantis has paid $773m in fuel economy penalties since 2018

Stellantis, the parent company of Chrysler, has paid $190.6 million this year in U.S. fuel economy penalties, government records show.

The payments come as U.S. regulators ease the burden on automakers, giving them more room to build gas-powered vehicles while delaying tougher electric vehicle (EV) targets.

The National Highway Traffic Safety Administration (NHTSA) said Stellantis paid $112.3 million in June and $78.3 million in March for failing to meet fuel standards from the 2019 and 2020 model years. Since 2018, the company has paid $773.5 million in total fines.

“This highlights the cost of lagging behind in fuel efficiency,” said a Washington-based auto policy analyst. “It’s a clear signal that automakers who hesitate on EVs and efficiency will pay heavily.”

Other major automakers have faced similar penalties. General Motors paid $128.2 million for the 2016 and 2017 model years. Meanwhile, Tesla earned $2.8 billion in 2023 from selling regulatory credits to companies struggling to meet emissions goals.

The penalties are shrinking, however. Under changes first signed into law by former President Donald Trump, automakers face no fines for missing efficiency rules from the 2022 model year onward. NHTSA confirmed last month that the policy remains in place, despite criticism from environmental groups.

Industry estimates show that if stricter standards had stayed, automakers could have faced $14 billion in fines through 2032, including $6.5 billion for GM, $3 billion for Stellantis, and $1 billion for Ford. The new rule cuts the expected total to $1.83 billion through 2031.

Electric vehicle makers like Rivian say the uncertainty is hurting business. The company recently told a court it could not finalise $100 million in credit revenue because regulators have not processed compliance reports since 2022.

The debate underscores a wider battle: Washington’s push for cleaner cars versus the industry’s reliance on profitable gas-powered trucks and SUVs.

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