The United States National Highway Traffic Security Administration (NHTSA) stated Wednesday it will delay till 2018 a planned jump in fines for automakers who cannot fulfill fuel efficiency requirements in reaction to concerns from the sector over their effect.
Two major auto trade associations representing automakers including General Motors, Toyota Motor and Volkswagen had urged U.S. regulators to reassess plans to more than double fines for failing to fulfill fuel efficiency standards, saying the move could have enhanced market compliance costs by $1 billion yearly.
Last year, Congress ordered federal firms to change civil penalties to represent inflation and, in reaction, NHTSA proposed to increase fines to $14 from $5.50 for each 0.1 mile per gallon each automobile below required requirements. Automakers had stated the higher fines could have hit automobiles constructed since 2014.
NHTSA stated that using the higher fines to prior years “would seem to enforce retroactive punishment” and would not increase fuel savings. NHTSA stated that was “not appropriate” and was fair to offer automakers time before greater fines were placed since product plans are hard to modify in the short-term.
It likewise said Wednesday in a different announcement that it will think about a proposition from automaker trade groups to even more “harmonize” its rules with requirements from the Environmental Protection Agency (EPA). Car manufacturers are looking for even more accuracies as they face high boosts in requirements through 2025.
The vehicle market has been advising President-elect Donald Trump to perform a sweeping review of the Obama administration’s fuel efficiency standards and other regulations for the sector.
Carmakers have paid $650 million in total fines over the past 30 years through 2015, as per NHTSA.