Automakers win delay in CAFE penalties
The National Highway Traffic Safety Administration has granted automakersê request for a delay in penalties for not meeting corporate average fuel economy (CAFE) standards, from MY 2015 to MY 2019. NHTSA said it gave the delay as an acknowledgement that manufacturers must plan their vehicle designs years ahead of time.
The agency had raised the penalty for noncompliance to $14 from $5.50 for each 0.1 mpg that an automaker falls short of its CAFE target, multiplied by the number of vehicles it sells from that fleet. The increase came in response to a 2015 law that directed all federal agencies to adjust penalties so they are sufficient to compel compliance and to keep pace with inflation.
The increase, announced in a July 5, 2016, Federal Register notice, surprised automakers, which had already sold many MY 2015 vehicles. The Alliance of Automobile Manufacturers called the move draconian. The Alliance and the Association of Global Automakers then filed the petition for delay.
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