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The Cost Of Selling Gas Guzzlers For FCA Is Staggering

motor1 logo motor1 2/12/2019 Anthony Karr
FCA headquarters sign© Motor1.com France FCA headquarters sign

More precisely, no less than $77 million.

Back in 2012, the Obama administration passed rules requiring automotive manufacturers to boost the fleet-wide fuel efficiency of their vehicles to more than 50 miles per gallon on average by 2025, or approximately 4.7 liters per 100 kilometers. While President Donald Trump administration has proposed rolling back those requirements, civil penalties have been imposed to automakers in the last few years. More precisely, according to a report from the National Highway Traffic Safety Administration (NHTSA), $77 million in fines for the entire industry in 2016, $2.3 million in 2014, and $40 million in 2011.

Research

A new report from Reuters shines more light on the penalties for 2016. It turns out Fiat Chrysler Automobiles paid a significant part of the total fine for failing to meet 2016 model year fuel economy standards. In fact, if we are to believe the information, the Italian-American company paid no less than $77 million late last year.

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FCA is among the manufacturers that have been actively lobbying against the fuel economy rules and even proposed freezing the requirements at 2020 model year levels until 2026. While claiming FCA is “committed to improving the fuel efficiency of our fleet and expanding our U.S. manufacturing footprint,” the automaker’s head of external affairs for North America, Shane Karr, said the rules need to be reformed rather than “requiring companies to make large compliance payments because assumptions made in 2011 turned out to be wrong.”

Back in September last year, Fiat Chrysler vice president responsible for overseeing fuel economy issues, Steve Bartoli, said the gap between the projected fuel efficiency levels and reality is “a wake-up call that assumptions made seven years ago about the U.S. auto market need to be revised.” The company has previously purchased emissions credits from Toyota, Honda, and Tesla in order to meet the efficiency regulations.

Source: Reuters

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