Biden's Fuel Economy Plan Threatens Automakers with $14 Billion in Fines

The Alliance for Automotive Innovation has expressed concerns that the NHTSA's proposed fuel economy standards for 2027-2032 model year vehicles could hinder the industry's transition to electric vehicles. The proposed standards, which call for a 2% per year fuel efficiency improvement for cars and a 4% per year improvement for light trucks, are deemed to exceed maximum feasibility by the Alliance. They also raise concerns about penalties for noncompliance and a pending rule at the US Department of Energy that could challenge automakers balancing their investments in electric vehicles and improving internal combustion engine vehicles. The Alliance fears that these factors could distract manufacturers from the EV transition. The NHTSA argues that the proposed standards will make cars more efficient, strengthen US energy independence, save money for Americans, and increase consumer choice.