FCA Fined $77 Million For Missing U.S. CAFE Fuel Economy Target

Fiat Chrysler Automobiles has revealed that it paid a $77 million civil penalty because its passenger cars built in the U.S. failed to meet required fuel economy targets for the 2016 model year.

Bloomberg reports that the car manufacturer was the only one to pay such a penalty for 2016 MY under the National Highway Traffic Safety Administration’s Corporate Average Fuel Economy (CAFÉ) requirements. This is the largest fine issued to a single company in at least five years, the NHTSA reports. FCA paid it in the fourth quarter of 2018.

“We at FCA are committed to improving the fuel efficiency of our fleet and expanding our U.S. manufacturing footprint,” head of external affairs at Fiat Chrysler for North Amerca Shane Karr said.

“Ultimately, both goals are better served by a CAFE program more closely aligned to the U.S. market, than by requiring companies to make large compliance payments because assumptions made in 2011 turned out to be wrong.”

Fiat Chrysler, as well as a number of other car manufacturers, have been outspoken critics of current fuel economy requirements that were put in place during Barack Obama’s presidency and, since President Donald Trump took office, have been pushing for less stringent standards.

The NHSTA and Environmental Protection Agency appear to be hearing these calls and have proposed capping mileage requirements at 37 mpg after 2020 rather than raising them to 47 mpg by 2025, as called for by the Obama administration-imposed target.

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  • Leconte Dave

    Expected

  • performante

    Dodge gives us the crazy, affordable, high horsepower cars we dream about. They took one for the team. Worth it.

  • CG

    Not to worry, though, the new COVFEFE “regulations” mandate ditching any kind of environmental standards and actually rewarding companies for the cars that get the worst mileage, like the 6000 SUX, an American tradition! 8.2 mpg!

  • Bash

    Dodge should be awarded for building an affordable dream cars. They fined it! Come on, our president has withdrawn from the weather agreement, fine him! F double standard!

    • TheAmerican2point0

      Our president withdrew from the weather thing yet the U.S. has the highest reduction in C02 in the world out of all countries. That climate thing was BS

  • Jerry Hightower

    other manufacturers meet the standards, why can’t FCA?

    • kachuks

      Because Hellcat.

    • TheAmerican2point0

      Because nearly every car they make is badass.

      • Silimarina

        Because nearly every car they make is bad. There fix it for you

        • TheAmerican2point0

          Sure thing kid

  • FoxJ30

    Maybe they should’ve kept the Dart or 200 alive to balance things out… even if they were sold at-cost to rental car companies.

  • kachuks

    Somewhere, Serg is smiling.

  • Mr. EP9

    Is it cheaper to pay the fine or retrofit cars to meet the standards? If it’s the former than I’m not surprised.

  • THAT’S A LOT OF MONEY BUT IT’S A SHAME THEY CAN’T KEEP UP. THAT NASTY OLD OBAMA WANTING TO CLEAN THE AIR FOR FUTURE GENERATIONS…HOW DARE HE.

  • Cobrajet

    I thought how did they endure so long.

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