Tesla bats for tougher US fuel economy standards as other carmakers slam new proposal

Tesla has called for additional tightening of fuel economy standards in the US at a time when other carmakers are leading protests against the National Highway Traffic Safety Administration. Leading companies – including General Motors, Ford and Stellantis NV – now face a combined $10.5 billion in fines from 2027 to 2032 under stricter average fuel economy rules. The proposed guidelines are part of the Joe Biden-led government’s bid to cut emissions and accelerate the country’s transition to electric vehicles.

According to a Reuters report the Elon Musk-led company has urged the Biden administration to finalise even tougher fuel economy standards than those proposed earlier this year. The NHTSA has proposed raising Corporate Average Fuel Economy car requirements by 2% and by 4% for trucks and SUVs annually between 2027 and 2032. Tesla meanwhile wants the agency to finalise rules increasing stringency for cars by 6% annually and 8% for trucks and SUVs.

The company reportedly insists that it would best “conserve energy and address climate change”.

In July this year the US NHTSA had proposed a fleetwide average mandate – known as the Corporate Average Fuel Economy standard – of about 93 kilometers per gallon by 2032. Officials indicate that this would cost General Motors $6.5 billion in fuel economy fines over the five-year period while Chrysler parent Stellantis faced a fine of $3 billion and Ford incurred penalties of $1 billion.

“These penalty figures are alarming given that the combined total of all civil penalties paid in the approximately 50-year history of the CAFE program is approximately $1.5 billion,” the American Auto Policy Council wrote in a letter to the US Department of Energy earlier this month.

(With inputs from agencies)