Tesla urges the US to increase fuel penalties
Elon Musk, CEO of Tesla, stands in the foundry of the Tesla Gigafactory during a press event.
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Tesla urges President Joe Biden’s administration and a U.S. appeals court to act swiftly to raise civil law
Penalties for automakers who fail to meet fuel economy requirements.
Electric vehicle maker Tesla is selling credits to other automakers to help them meet government emissions regulations for vehicles, and says those credits are less valuable due to changes in rules made by former President Donald Trump’s administration. Tesla virtually met with National officials on Aug. 30
The Highway Traffic Safety Administration (NHTSA) emerges from a document filed by the agency last week.
On Aug. 18, the NHTSA issued a notice stating it could impose higher penalties for earlier model years on automakers who fail to meet fuel efficiency requirements but consider public comments first.
Automakers have warned that increasing penalties could cost them at least $ 1 billion annually for both non-compliance and higher rates on loans used to comply with the rules.
The Trump administration in its final days in January postponed an ordinance from 2016 that more than doubled penalties for automakers who fail to meet average fuel economy (CAFE) requirements.
The government memo said Tesla proposed to NHTSA to withdraw Trump’s lawsuit immediately, saying it “creates persistent uncertainty in investments and transactions across the industry, and any delays will continue to adversely affect the credit market until that.” Problem is solved “. Tesla believes that “any delays will continue to adversely affect the credit market.”
Tesla separately urged the U.S. Second District Court of Appeals again on Aug. 27 to quickly reintroduce higher penalties.
In April, the court denied Tesla’s motion for immediate action pending review by the NHTSA.
“The uncertainty sustained by the slow pace of rulemaking by the NHTSA is therefore compounded by the likelihood of another round of litigation,” Tesla wrote, warning that the uncertainty “could last for several years.”
A group representing major automakers such as General Motors, Toyota Motor, Ford Motor and Volkswagen called on the court to deny Tesla’s motion. “The fact that Tesla could benefit from more certainty about the value of the accumulated CAFE credits is hardly a reason to abandon an ongoing administrative procedure,” the group wrote in a court file.
Under former President Barack Obama, higher penalties were due to begin in the 2019 model year, but Trump put it into effect in the 2022 model year. The NHTSA is considering reinstating the Obama rule.
Last year’s CAFE fines, which have not yet been assessed, could cost Chrysler parent Stellantis hundreds of millions of dollars while adding to the value of the credits Tesla sold.
Stellantis said in August that the costs related to possible higher CAFE fines could be around 521 million euros ($ 609 million). Fiat Chrysler paid nearly $ 150 million for failing to meet the 2016 and 2017 requirements.