GM and Stellantis: The U.S. government, led by President Joe Biden, plans to significantly increase fuel economy standards until 2032. G.M. may face fines of up to $6.5 billion, while Stellantis, the owner of Chrysler, may face penalties of $3 billion.
The American Automotive Policy Council wrote a letter to the U.S. Energy Department on behalf of GM, Stellantis, and Ford Motor. The letter states that the penalties for not meeting CAFE standards are shocking.
As we learn more about regulations, the letter says Ford could face fines of up to $1 billion. Volkswagen (VOWG_p.DE) may face over $1 billion in penalties.
G.M. and Stellantis stayed quiet and cautious, with worried expressions. Ford and Volkswagen remained silent for now.
In this private email, a request was made to the DOE. The automakers appealed to the DOE to reconsider changing the Petroleum Equivalency Factor, which would increase compliance costs for domestic cars.
An obvious wrong is shown when this puzzle’s rules are broken down. The three Detroit automakers pay $2,151 per car in licensing fees, significantly more than their competitors’ $546 per car. Also, this policy trend will benefit companies slow to switch to all-electric.
The NHTSA proposed increasing the average fuel economy of cars by 2% per year and trucks/SUVs by 4% per year until 2032.
Also Read: UAW Strike Hits Hard: GM, Ford Furlough 500 More Workers!
The Department of Energy aims for the stars. It requires a significant change to NHTSA’s CAFE program for electric car fuel efficiency calculations.
The DOE contacted Detroit’s big automakers and their peers on September 14 to discuss project start dates and potential wait time issues.
The saying “Too much of a good thing can be bad” applies to this story. Promoting E.V.s aims to reduce oil usage. But there is a problem when this shift is given too much weight, which could lead to more oil use because it makes traditional cars get worse gas mileage, as the DOE said in April.
In a rare moment of agreement, major automakers formed a coalition to warn of an impending end of the world. They said CAFE fines could reach $14 billion for the entire business.
The National Highway Traffic Safety Administration has been unusually silent on Monday and hasn’t immediately commented. A clear statement demonstrates the seriousness of law requirements. Automakers can use electric cars to comply with the law and avoid fines.
In the story of regulations, automakers must find ways to get credit and pay fines for not meeting CAFE standards. This is a risky situation. Stellantis and G.M. paid $363 million in CAFE fines for not following earlier model year rules.
Our Reader’s Queries
Who is Stellantis owned by?
Stellantis (STLA) stock is owned by a diverse group of investors, including institutions, retail investors, and individuals. Institutional investors hold about 15.91% of the company’s stock, while insiders own just 0.11%. The remaining 83.99% is owned by public companies and individual investors. This mix of ownership structure ensures a healthy balance of investment and interest in the company.
Who owns GM?
In April 2023, the company’s major shareholders included Mary Barra, Mark Reuss, Douglas L. Parks, BlackRock, Inc., The Vanguard Group, and Capital Research Global Investors.
Is Opel GM or Stellantis?
Opel, a German car maker, has been a subsidiary of Stellantis since January 16, 2021. The company is often referred to as Opel Automobile GmbH, with a German pronunciation of [?o?pl?].
What did the UAW get from GM?
The recent agreement between the UAW and GM is set to bring a significant boost to base wages, with a 25% increase in effect until April 2028. This will result in a cumulative rise of 33% for the top wage, which will be further compounded by estimated cost-of-living adjustments, bringing it to over $42 per hour.