The civilian Federal Highway Administration and Vehicle Safety Administration submitted a new proposal regarding fuel efficiency standards over the summer. However, the NHTSA’s proposal does not go far enough for the electric car manufacturer Tesla, while the competition has criticized it harshly.
• NHTSA makes new proposal for CAFE standards
• Tesla is demanding even stricter requirements
• Other car manufacturers sometimes criticize harshly
NHTSA: New Proposal for CAFE Standards
In July, the U.S. civilian federal highway and vehicle safety agency, the National Highway Traffic Safety Administration (NHTSA), announced a new proposal for Corporate Average Fuel Economy (CAFE) standards that would determine the minimum distance vehicles can travel on a gallon of fuel have to drive.
The new standards would apply to cars and light trucks from model years 2027-2032 and heavy-duty pickups and vans from model years 2030-2035. If the proposal passes, CAFE requirements would increase by two percent annually for cars and four percent for trucks. “For heavy-duty pickups and vans, the proposal would increase fuel efficiency by 10 percent year-over-year,” the NHTSA said. By 2032, an industry-wide fleet average of 58 miles per gallon should be achieved.
“The proposal would provide American consumers with critical savings at the pump and establishes goals consistent with Congressional direction to conserve energy and provide industry with flexibility in how best to achieve those goals using proven, available fuel-saving technologies the NHTSA said in a statement.
Tesla wants stricter requirements
However, this proposal does not go far enough for the US electric car manufacturer Tesla. The company urged the regulator to increase proposed requirements to six percent per year for cars and eight percent for trucks and SUVs, saying it was best to “save energy and fight climate change,” Reuters reports .
Tesla’s demand therefore stands in contrast to the position of numerous other car manufacturers, for whom the NHTSA’s current proposal goes too far. A group representing numerous major automakers sharply criticized NHTSA’s proposal and called for significant revisions, according to Reuters.
In addition, the American Automotive Policy Council, which represents the Big Three from Detroit – Ford, General Motors and Chrysler parent company Stellantis – called on the NHTSA to halve the proposed increase in fuel efficiency for trucks to two percent annually. The proposal “would have a disproportionate impact on the truck fleet.” Since 83 percent of the vehicles produced by Ford, GM and Stellantis are trucks, the new requirements would particularly affect the Detroit Three.
Penalties threaten
As Reuters reports, the Alliance for Automotive Innovation said automakers would face penalties of more than $14 billion between 2027 and 2032 for non-compliance. The NHTSA, on the other hand, estimated that the proposal’s combined benefits exceeded the costs by more than $18 billion.
According to Reuters, Toyota said the fines were “evidence that the technology is not sufficient to meet the proposed standards and that these standards have been set beyond the maximum feasible.” Meanwhile, US automakers warned that the penalties would cost General Motors $6.5 billion, Stellantis $3.1 billion and Ford $1 billion.
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