The proposal by U.S. President Joe Biden’s administration to hike fuel economy standards through 2032 would cost General Motors (GM.N) $6.5 billion in fines and Chrysler parent Stellantis (STLAM.MI) $3 billion, according to a letter seen by Reuters.
The American Automotive Policy Council, representing GM, Stellantis and Ford Motor (F.N), said in a letter to the U.S. Energy Department on Friday that the size of the expected penalties for not meeting proposed Corporate Average Fuel Economy (CAFE) requirements are “alarming.”
Ford separately faces about $1 billion in penalties, the letter said, while Volkswagen (VOWG_p.DE) faces upwards of $1 billion, the most among foreign automakers.
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