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Chrysler parent Stellantis has paid $190.7 million in civil penalties for failing to meet U.S. fuel economy requirements for 2019 and 2020. According to government documents reviewed by Reuters, the company also owes an additional $459.7 million in outstanding penalties.
The payments in March and May highlight the significant compliance costs associated with meeting U.S. fuel rules amidst the industry’s shift towards electric vehicles.
Penalties Incurred Before Stellantis Formation:
Stellantis, which also owns labels such as Fiat and Peugeot, stated that these penalties were incurred before its creation in 2021.
The company emphasized that the penalties are “not indicative of the company’s direction,” noting its commitment to investing over 50 billion euros ($54.39 billion) globally to develop electric vehicles. Stellantis plans to introduce two dozen EV models in the U.S. market by 2030.
Historical Penalty Payments:
In 2023, Stellantis paid a record $235.5 million in penalties for the 2018 and 2019 model years and $156.6 million for the 2016 and 2017 models.
This follows the National Highway Traffic Safety Administration’s (NHTSA) decision in March 2022 to increase penalties for non-compliance with fuel efficiency requirements, nearly tripling the fines.
Future Penalty Projections:
The NHTSA has proposed a significant increase in fuel economy standards through 2032, projecting a total of $14 billion in fines for the industry over a five-year period.
General Motors, Stellantis, and Ford Motor are expected to face substantial fines, with Stellantis projected to incur $3 billion in penalties.
However, under the finalized rules, the auto industry might face a total of $1.83 billion in fines from 2027 through 2031, with the possibility of reduced or no fines depending on compliance.
