💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

Exclusive-Chrysler-parent Stellantis paid $190.7 million in US fuel economy penalties

Published 07/22/2024, 11:33 AM
Updated 07/22/2024, 11:36 AM
© Reuters. FILE PHOTO: The logo of Stellantis is seen on the company's building in Velizy-Villacoublay near Paris, France, March 19, 2024. REUTERS/Gonzalo Fuentes/File Photo
GM
-
F
-
STLA
-

By David Shepardson

(Reuters) -Chrysler parent Stellantis (NYSE:STLA) paid $190.7 million in civil penalties for failing to meet U.S. fuel economy requirements for 2019 and 2020, and owes another $459.7 million in outstanding penalties, government documents seen by Reuters show.

The penalties, paid in March and May, were disclosed by the National Highway Traffic Safety Administration (NHTSA), which administers the Corporate Average Fuel Economy program, on a government website. The disclosure shows the significant compliance costs to meet U.S. fuel rules even as automakers are spending billions of dollars to build electric vehicles.

Stellantis, which also owns Fiat, Peugeot (OTC:PUGOY) and other brands, said the penalties were incurred before it was created in 2021. Stellantis said the penalties are "not indicative of the company’s direction," saying that it is investing more than 50 billion euros ($54.39 billion) worldwide to produce EVs, including two dozen U.S. market EVs by 2030.

The automaker and the NHTSA on Friday both confirmed Reuters' calculation of the outstanding penalties.

The Italian-American automaker in 2023 paid a record-setting $235.5 million for the 2018 and 2019 model years in fuel economy penalties and $156.6 million in penalties for the 2016 and 2017 model years.

In March 2022, the NHTSA reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements for 2019 and beyond, nearly tripling the penalties.

© Reuters. FILE PHOTO: The logo of Stellantis is seen on the company's building in Velizy-Villacoublay near Paris, France, March 19, 2024. REUTERS/Gonzalo Fuentes/File Photo

Last year, the NHTSA said its proposal to hike fuel economy standards through 2032 would cost the industry $14 billion in projected fines over a five-year-period, including $6.5 billion for General Motors (NYSE:GM), $3 billion for Stellantis and $1 billion for Ford Motor (NYSE:F). But under the rules finalized last month, the auto industry is collectively expected to face a total of $1.83 billion in fines from 2027 through 2031 -- and it could be as little as nothing, the NHTSA said.

($1 = 0.9194 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.