WASHINGTON, (Reuters) - General Motors will see its technology costs decline by $20.4 billion through 2031 as a result of drastically lower vehicle fuel economy rules finalized Monday, the US Transportation Department said.
In total, the Trump administration estimates automakers' technology costs will decline by $60.6 billion through 2031, or about $1,289 per vehicle, as a result. The 2024 fuel economy rules had been estimated to cost GM $31.7 billion through 2031.
The new rule is expected to take effect around early December. Automakers will not need to add expensive emissions equipment to reduce fuel consumption or build more EVs, as they would have had to under the prior rule in order to meet more stringent requirements.
The department's National Highway Traffic Safety Administration (NHTSA) said Chrysler-parent Stellantis's costs will decline by $6.6 billion, Ford by $5.8 billion, Toyota by $4.5 billion and Honda by $4.1 billion.
GM said it supports the goals of the rule and its "intention to better align fuel economy standards with market realities."
Last year, Congress passed legislation ending penalties for not meeting fuel economy requirements after Stellantis paid about $775 million in civil penalties for failing to meet US fuel economy requirements since 2019.
GM paid $128.2 million in penalties for 2016 and 2017. GM also paid a $145.8 million penalty and forfeited fuel economy credits worth hundreds of millions of dollars at the time after a government investigation found excess emissions from approximately 5.9 million GM vehicles.
In 2023, under former President Joe Biden, NHTSA said its proposal to hike fuel economy standards through 2032 would cost the industry $14 billion in projected fines including $6.5 billion for GM, $3 billion for Stellantis and $1 billion for Ford Motor.
The final rule adopted in 2024 eased requirements and said the auto industry would face no more than $1.83 billion in fines from 2027 through 2031.
Reporting by David Shepardson; Editing by Nick Zieminski and Jonathan Spicer
Source: Reuters