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The move by the Biden administration reverses steps taken under former President Donald Trump<\/a><\/span><\/strong>. The current White House last year also reinstated plans to boost CAFE numbers. Those also had been rolled back by the Trump White House.<\/p>\n\n\n\n The higher fines will “increase the accountability of manufacturers for violating the nation\u2019s fuel economy standards,” said the National Highway Traffic Safety Administration, and “incentivizes manufacturers to make fuel economy improvements.”<\/p>\n\n\n\n Currently, manufacturers pay $5.50 for every 0.1 mile per gallon per vehicle that their corporate fleet falls short of the CAFE rules. That now jumps to $14 for the 2022 model year and $15 going forward. For a manufacturer that sells a million vehicles annually and misses the target by just 1 mpg the fine would jump from a total $55 million this model year to $140 million, and again ruse to $150 million in 2023.<\/p>\n\n\n\n The penalties could hit Detroit automakers especially hard as they have cut back on their passenger car lines while rolling out a procession of more powerful light trucks like the Ram 1500 TRX. That model manages just 10 mpg in the city, 14 on the highway. Ram\u2019s parent Stellantis has estimated the increase in CAFE penalties could result in $572 million in fines this year alone. And the industry, overall may face $1 billion in penalties.<\/p>\n\n\n\n The increases come as something of a gift for automakers focusing exclusively on battery-electric vehicles, such as Tesla, Rivian and Lucid. And they could benefit even more if the money were directed into the funds the Biden administration’s plan to use to build up the still-limited U.S. EV charging network. The president wants 500,000 charging stations in place by 2030<\/a><\/span><\/strong>, a project given a boost by last year\u2019s federal infrastructure program.<\/p>\n\n\n\n According to Reuters, a trade group representing most of the auto industry said a \u201cbetter outcome\u201d for the CAFE fines would be to invest them into \u201celectric vehicles, batteries and charging infrastructure instead of disappearing into the general fund of the Treasury.”<\/p>\n\n\n\n In a statement, Stellantis said, it would “like to work with the administration and Congress to allow the agencies to use the proceeds from penalties to bolster investments in the technologies and infrastructure required to accelerate a robust U.S. market for EVs.”<\/p>\n\n\n\n Traditional automakers are relying on profits earned on vehicles with internal combustion engines to fund their increasingly aggressive electrification programs. General Motors will spend about $35 billion through mid-decade, while Volkswagen has laid out a target of more than $100 billion by 2030.<\/p>\n\n\n\nFines could reach $1 billion annually<\/h2>\n\n\n\n
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Automakers propose alternatives<\/h2>\n\n\n\n
![\"ebee](\"https:\/\/www.thedetroitbureau.com\/wp-content\/uploads\/2021\/08\/ebee-streetlight-charger-from-car-1024x683.jpg\")
Biden v Trump<\/h2>\n\n\n\n