Ford Says Strict Fuel Rules Will Cost It $1 Billion in Fines
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Ford Motor Co. would face for the first time $1 billion in fines from 2027 to 2032 under stricter proposed average fuel economy rules that target SUV and truck manufacturers, according to a filing the Dearborn, Mich.-based manufacturer has made with the federal government.
The National Highway Traffic Safety Administration has proposed a fleetwide average mandate, known as the Corporate Average Fuel Economy standard, of about 58 miles per gallon by 2032. The more stringent rules are part of a Biden administration effort to cut emissions and accelerate the country’s transition to electric vehicles.
That would disproportionately impact Ford and Detroit’s other two major automakers, the company said in comments posted online by the agency.
“Ford has never paid civil penalties under the CAFE program, and yet by NHTSA’s own analysis Ford would likely pay $1 billion in civil penalties if NHTSA’s proposal were finalized,” the company said. “This is alarming in and of itself, and threatens substantial economic hardship for Ford.”
Ford’s Detroit rivals, General Motors Co. and Stellantis NV, also would stand to face fines under the Biden administration’s proposal, according to their Washington-based trade group, the American Automotive Policy Council. Under the administration’s current proposal, GM’s penalties would amount to $6.5 billion over the five-year period, while Stellantis would pay $3 billion.
Current rules call for automakers to achieve an average of about 49 mpg by 2026. The industrywide average for the 2021 model year was 25.4 mpg, according to the government’s most recent data. Ford and other manufacturers typically comply with the federal fuel economy rules by purchasing credits from electric carmaker Tesla Inc., which called for even tougher standards on Oct. 17.
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