A win for automakers as US softens EV mileage rule
By David Shepardson
WASHINGTON (Reuters) -Automakers will get significantly more mileage credits for building electric vehicles to meet U.S. fuel economy requirements than U.S. regulators initially proposed, under final rules released Tuesday.
The rule means automakers will now be able to build more gas-powered vehicles through 2030 and still meet overall Corporate Average Fuel Economy requirements than under the tougher, initial Energy Department (DOE) proposal.
The DOE unveiled final rules that soften its proposal to slash electric vehicles' mileage ratings by 72% in 2027 to meet government fuel-economy requirements. The new rules ease revisions to the calculations and gradually phase them in through 2030, rather than by 2027.
DOE assigns miles per gallon equivalent (MPGe) ratings for electric vehicles that are averaged with internal combustion vehicles to meet an automaker's overall CAFE requirements.
The decision, first reported Monday by Reuters, is a win for the Detroit Three automakers, other major automakers and the United Auto Workers union that raised alarm that the proposal could have resulted in U.S. automakers facing $10.5 billion in CAFE fines through 2032 for not meeting fuel-economy requirements.
The final rule reduces the petroleum-equivalent EV fuel economy rating through 2030 and by 65% in total, giving automakers more time to adjust.
Under the prior proposal, General Motors (NYSE:GM) would face $6.5 billion in fines, followed by Chrysler-parent Stellantis (NYSE:STLA) with $3 billion, and Ford (NYSE:F) $1 billion through 2032. The National Highway Traffic Safety Administration is set to proposal final revised CAFE rules this spring.
Alliance for Automotive Innovation CEO John Bozzella said Tuesday the
Read more on investing.com
