Unsuccessful MPG Fine Rollback Means Automakers Must Take Bigger Steps

The Trump administration has made undoing broad-sector industry regulation a top priority, but for automakers, a recent failure to do just that may change how they do business in the USA. The Obama-era car manufacturer regulations set a fuel economy benchmark that some automakers (like Jaguar Land Rover) had to either beat or pay a fine for not surpassing. Jaguar Land Rover’s strategy so far was to just absorb the $55 per MPG under par per car sold fine, but with the fine set to adjust for inflation to $140 per MPG per car sold, the automaker might be rethinking its strategy.   Automakers may complain about rising gas mileage standards, but as several have proved over the years, they don't always have to meet them. Another strategy, employed regularly over the years by a few automakers is to ignore the fuel economy standards and just pay the penalties for missing them.   Those penalties aren't cheap, and they're now set to go up, following a court ruling that rejected a Trump Administration plan to roll them back.   Since Corporate Average Fuel Economy (CAFE) standards are based on an average of every car an automaker sells across the country in a given year, any penalties are also paid per car, and per mpg below the target average that the automaker achieves across all the vehicles it sells in a given model year. Click Here to Continue Reading

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