FCA Hit With $79 Million Penalty For Failing To Meet 2017 Fuel Economy Standards

Fiat Chrysler Automobiles faces a $79 million U.S. civil penalty for failing to meet 2017 fuel economy requirements in the United States.

Reuters reports that of the 18 major car manufacturers in the United States, 13 of them failed to comply with fuel economy and greenhouse gas emissions standards for the 2017 model year without using credits. FCA was hit with a $77 million penalty earlier this year for not complying with standards for the 2016 model year.

The National Highway Traffic Safety Administration (NHTSA) reports that the 2017 model fleet fell 1-1/2 miles per gallon short of the 33.8 mpg standard without including credits and revealed that more car manufacturers are failing to comply with standards for the 2018 and 2019 model years.

Also Read: E-Mails Show EPA Fought Government’s Claim Lower Fuel Economy Standards Would Save Lives

A Fiat Chrysler Automobiles spokesman has confirmed that the company has 60 days to pay its $79 million fine, but said that the departing sum won’t have a material impact on its business.

While FCA failed to meet the required standards, it did say that it “continues to support and deliver year-over-year fuel-economy improvements.” In addition, the company reiterated plans to spend $10 billion through 2022 to develop more than 30 hybrid and electric vehicles.

In a statement, the Alliance of Automobile Manufacturers, which represents the likes of GM, Volkswagen, Toyota and others, said it supports the increased standards.

“The Alliance continues to advocate for increased standards that are attainable and reflect marketplace realities,” a statement read.

  • Craig

    The irony is… with all of the new EV’s expected – there is going to be a glut of oil. And prices will plummet. YES! That’s how I imagine it.

    • kachuks

      Not a bad thing. My RAM is a thirsty girl.

      • Ben

        You’ve got a newer one? Overall, I love the RAM’s styling and interior quality. I’m looking to replace my 4Runner with a full size or even 2500. Ford’s Tremor is a very enticing package however, 37’s + diesel and great safety rating are appealing.

        • kachuks

          08. She was well taken care of. Plenty of cash leftover for upgrades.

      • Craig

        So is my 300C SRT8 so I encourage people to buy EV’s!

  • ThatGuy

    Seems to me they knew this was coming thus the aggressive push to merge with Renault-Nissan.
    Wow and here i was thinking, advancement and becoming a great challenge to keep the car market competitive.
    Nice FCA, really classy.

  • Holmer_k

    The fine is a joke. It’s cheaper to pay than comply.

  • Ben

    Thanks for the citation. I wouldn’t have believed it, wow.

  • Holmer_k

    Shortsightedness is rampant in corporations who put this years profit above all else so the CEO’s can get their multi-million dollar bonuses. It would have cost them far, FAR more to comply than the fine they’ve got to pay. And if that fine goes up next year, the story won’t be any different even of the fine is more because we are talking billions to revamp an entire drive-train to squeek out another couple of mpg’s. 79 million is chump change compared to that and the fine could triple and it would still be cheaper.

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