Lobbyists Estimate Billions in Fines If New Fuel Economy Rules Adopted

by Matthew Guy

Published: October 3rd, 2023

lobbyists estimate billions in fines if new fuel economy rules adopted

A letter from talking heads at an outfit called the American Automotive Policy Council outlines what it estimates billions of dollars in fines could be levied at companies like General Motors and Stellantis if a government proposal to hike fuel economy standards through 2032 is adopted.

Reuters is reporting the concerns were sent to the U.S. Energy Department last week, citing “alarming” expected penalties for companies not meeting proposed Corporate Average Fuel Economy (CAFE) requirements. In a nutshell, the DOE is seeking to revise how it calculates petroleum-equivalent fuel economy ratings for electric vehicles and plug-in hybrids under CAFE. Currently known as MPGe, efficiency numbers for these machines use a byzantine morass of values for national electricity, petroleum generation, distribution efficiency, and even driving patterns.

Proposed rules would change these calculations and likely saddle EVs and PHEVs with MPGe values far below the digits they garner today. Examples cited by Reuters suggest machines like the Chrysler Pacifica plug-in hybrid could fall from 88.2 MPGe to 59.5 MPGe, potentially putting companies in a bind if they are relying on these vehicles to boost fleet numbers. Automakers tend to buy credits or pay fines if they cannot meet CAFE requirements.

Without delving into too much of their math, the American Automotive Policy Council is suggesting GM could be on the hook for $6.5 billion under the new rules, while the bill at Stellantis would be somewhere in the neighborhood of $3.0 billion. Companies like Ford and VW could also get dinged for about a billion bucks, apparently.

If you’re wondering, the AAPC bills itself as AAPC is an association based in Washington, D.C. which helps American Automakers deliver on commitments by representing Ford, GM, and Stellantis on “common public policy interests” at the federal and international levels. In broader terms, going to bat for them when the gubmint wants to change something. Matt Blunt is the group’s president and a former governor of Missouri.

[Image: Siripatv/Shutterstock]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.

#CAFE #Automakers #Washington #FuelEconomy

Matthew Guy

Matthew buys, sells, fixes, & races cars. As a human index of auto & auction knowledge, he is fond of making money and offering loud opinions.

More by Matthew Guy

Comments

Join the conversation

6 of 19 comments

Dukeisduke on Oct 03, 2023

Meanwhile, the Automotive Alliance for Innovation, that represents the Big 3, blasted NHTSA's CAFE proposal, stating it "exceeds maximum feasibility", and will cost the automakers $14b in fines between 2027 and 2032.

NHTSA's reaction: Lol, just build more EVs, you silly gooses.

What happens if consumers revolt, won't buy EVs, and hold on to their old cars instead?

2 Reply
- See 3 previous
- SPPPP on Oct 03, 2023
  
  Then the taxman cometh.
  
  1
- Lou_BC on Oct 03, 2023
  
  Let me get this straight, the lobbiests claim 10 's of billions in fines based on what? The current crop of EV'S?
  Looks like Ford gets off light since they will be the most prepared.
  Oh and science just stopped functioning?
  
  Like
- Jeff on Oct 04, 2023
  
  Lou_BC--I have more faith in science than many on this site. There will be push back on these regulations and compromises made. These are proposed regulations meaning they have not been set yet. I remember many similar regulations on vehicles in the past in regards to safety, efficiency, and emissions and most of those proposed regulations were changed and deadlines were extended and most auto manufacturers were able to eventually comply with the regulations.
  
  Like
- 28-Cars-Later on Oct 05, 2023
  
  @Lou
  
  Too early to tell, but Ford may not make it based on it's current BEV missteps.
  
  "Oh and science just stopped functioning?"
  That happened in 2020, did someone turn it back on?
  
  Like
28-Cars-Later on Oct 05, 2023

"Reuters is reporting the concerns were sent to the U.S. Energy Department last week, citing “alarming” expected penalties for companies not meeting proposed Corporate Average Fuel Economy (CAFE) requirements. In a nutshell, the DOE is seeking to revise how it calculates petroleum-equivalent fuel economy ratings for electric vehicles and plug-in hybrids under CAFE. Currently known as MPGe, efficiency numbers for these machines use a byzantine morass of values for national electricity, petroleum generation, distribution efficiency, and even driving patterns."

Its hard to keep track but didn't some unelected technocracy already decree the CAFE standards for 2024ish to be 49mpg? So now we're going to go full retard for 2030ish and tinker with our CAFE formula while simultaneously going to I think 58mpg? I have a better plan, you're all fired.

Like Reply

Recent Comments

MRF 95 T-Bird Whenever I travel and I’m in my rental car I first peruse the FM radio to look for interesting programming. It used to be before the past few decades of media consolidation that if you traveled to an area the local radio stations had a distinct sound and flavor. Now it’s the homogenized stuff from the corporate behemoths. Classic rock, modern “bro dude” country, pop hits of today, oldies etc. Much of it tolerable but pedestrian. The college radio stations and NPR affiliates are comfortable standbys. But what struck me recently is how much more religious programming there was on the FM stations, stuff that used to be relegated to the AM band. You have the fire and brimstone preachers, obviously with a far right political bend. Others geared towards the Latin community. Then there is the happy talk “family radio” “Jesus loves you” as well as the ones featuring the insipid contemporary Christian music. Artists such as Michael W. Smith who is one of the most influential artists in the genre. I find myself yelling at the dashboard “Where’s the freakin Staple singers? The Edwin Hawkins singers? Gospel Aretha? Gospel Elvis? Early Sam Cooke? Jesus era Dylan?” When I’m in my own vehicle I stick with the local college radio station that plays a diverse mix of music from Americana to rock and folk. I’ll also listen to Sirius/XM: Deep tracks, Little Steven’s underground as well as Willie’s Roadhouse and Outlaw country.
The Comedian I owned an assembled-in-Brazil ‘03 Golf GTI from new until ‘09 (traded in on a C30 R-Design).First few years were relatively trouble free, but the last few years are what drove me to buy a scan tool (back when they were expensive) and carry tools and spare parts at all times.Constant electrical problems (sensors & coil packs), ugly shedding “soft” plastic trim, glovebox door fell off, fuel filters oddly lasted only about a year at a time, one-then-the-other window detached from the lift mechanism and crashed inside the door, and the final reason I traded it was the transmission went south.20 years on? This thing should only be owned by someone with good shoes, lots of tools, a lift and a masochistic streak.
Terry I like the bigger size and hefty weight of the CX90 and I almost never use even the backseat. The average family is less than 4 people.The vehicle crash safety couldn't be better. The only complaints are the clumsy clutch transmission and the turbocharger.
MaintenanceCosts Plug in iPhone with 200 GB of music, choose the desired genre playlist, and hit shuffle.
MaintenanceCosts Golf with a good body and a dying engine. Somewhere out there there is a dubber who desperately wants to swap a junkyard VR6 into this and STANCE BRO it.