The Biden administration’s proposal to order automakers to increase the average fuel economy of their vehicles in order to limit pollution will cost manufacturers $14 billion dollars in fines, according to the biggest auto industry trade group in the US.
Mike Hartrick, senior director of environment and energy for the Washington-based Alliance for Automotive Innovation, said the US National Highway Traffic Safety Administration’s proposal for automobiles to reach an average of about 58 miles (93.3 kilometers) per gallon by 2032 “exceeds maximum feasibility,” even with expected increases in electric vehicles sales in the coming years.
“NHTSA projects that manufacturers will pay over $14 billion in non-compliance penalties, effecting one in every two light trucks in 2027-2032, and one in every three passenger cars in 2027-2029,” Hartrick said in a public hearing on the proposed rules that took place in Washington on Thursday.
NHTSA’s proposal calls for fuel-efficiency gains of 2% a year for passenger cars and 4% annually for light trucks starting with model year 2027, as well as improvements for commercial pickups and work vans in the 2030s.Hartrick warned regulators that the increased costs borne by automakers under the proposed rules would passed on to car buyers already facing record high sticker prices.
“The number of non-compliant vehicles and manufacturers projected exceeds reason and simply put, will increase costs to the American consumer,” he said.