Stellantis Faces Hefty Fines for Fuel Economy Non-Compliance

Stellantis has paid $190.7 million in penalties for not meeting U.S. fuel economy standards for 2019 and 2020 and owes an additional $459.7 million. These penalties, disclosed by the National Highway Traffic Safety Administration (NHTSA), highlight the financial burden on automakers to comply with fuel regulations despite their investments in electric vehicles.

Stellantis, the automotive giant and parent company of Chrysler, has paid a staggering $190.7 million in civil penalties for failing to meet U.S. fuel economy standards for 2019 and 2020. An additional $459.7 million in penalties remains outstanding, according to government documents reviewed by Reuters.

These penalties were revealed by the National Highway Traffic Safety Administration (NHTSA), which administers the Corporate Average Fuel Economy (CAFE) program, and were paid in March and May. The disclosures underscore the significant cost burdens faced by automakers in meeting U.S. fuel regulations, even as they invest billions to develop electric vehicles.

Stellantis, which also owns brands such as Fiat and Peugeot, emphasized that these penalties were incurred before the company was formed in 2021. The company stated that the fines are not reflective of its current direction or investments. Stellantis is earmarking over 50 billion euros ($54.39 billion) globally to produce electric vehicles, with a goal of launching two dozen EVs in the U.S. market by 2030.

(With inputs from agencies.)