Automakers could see a financial tail wind that runs in the billions of dollars after the U.S. lowered fuel economy standards and stopped issuing fines for violations of those rules, according to an auto analyst.
The National Highway Traffic Safety Administration in late September sharply reduced fuel economy targets for light-duty vehicles to an average of 34.9 miles per gallon by 2031. Under the previous rules the Biden administration finalized in 2024, the U.S. fleet was then expected to average 50.4 miles per gallon by the same time.
That followed Congress voting last year to eliminate the fines automakers faced for failing to comply with regulations. Several years ago, General Motors and Stellantis paid hundreds of millions of dollars in civil penalties for failing to meet U.S. fuel economy requirements for prior model years, Reuters reported.
“We’ve already seen [costs from fines and credits] come down even this year and serve as…
