Stellantis paid $190.6 million in US fuel economy penalties this year, agency says

By David Shepardson

Aug 26 (Reuters) - Chrysler-parent Stellantis paid $190.6 million in penalties this year for not meeting U.S. fuel economy requirements, according to a government report and the Italian-U.S. automaker.

The National Highway Traffic Safety Administration said in an annual report that Stellantis paid $112.3 million in June and $78.3 million in March in payments for shortfalls from the 2019 and 2020 model years. In total, Stellantis has paid $773.5 million since 2018.

Last month, NHTSA told automakers they face no fines for failures to meet fuel efficiency rules dating back to the 2022 model year under a law signed by President Donald Trump.

Stellantis confirmed the figures to Reuters Tuesday but declined further comment.

Trump's tax and budget bill ends penalties for not meeting Corporate Average Fuel Economy rules under a 1975 energy law.

Rivian RIVN.O said in a court filing this month that because NHTSA has not processed end-of-year reports or compliance notifications for the 2022 model year and later, it cannot finalize previously negotiated transactions worth $100 million in credit revenue.

The fuel economy penalty change is one of a number made by Washington to make it easier for automakers to build gasoline-powered vehicles.

GM GM.N previously paid $128.2 million in penalties for 2016 and 2017.

Last year, Tesla TSLA.O said it received $2.8 billion in global revenue from regulatory credits it earns from selling zero-emission EVs and sells to other automakers seeking to meet vehicle emissions targets.

In June, NHTSA paved the way for looser U.S. fuel economy standards by declaring that former President Joe Biden's administration exceeded its authority by assuming high uptake of electric vehicles in calculating rules.

In 2023, under Biden's administration, NHTSA said its fuel economy proposal would cost the industry $14 billion in projected fines including $6.5 billion for GM, $3 billion for Stellantis, and $1 billion for Ford F.N through 2032.

The final rule adopted last year eased requirements and the agency said the industry would face no more than $1.83 billion in fines through 2031.