Automakers face higher fines for violating stringent federal fuel-efficiency standards requiring them to produce produce car fleets that average over 50 miles per gallon by 2025 after a court overturned a Trump administration decision to postpone a hike in the penalties.
As reported by the Detroit News, in a move that stoked ire among environmentalists, the National Highway Traffic Safety Administration announced in January that it was postponing a scheduled increase that would have raised the penalty for auto companies that fail to meet the higher emission standards. The fine was scheduled to increase to $14 from $5.50 for each one-tenth of a mile-per-gallon their average fuel economy falls short.
That penalty would be multiplied by the total number of cars in automakers’ fleets sold in that model year. The delay was overturned by the U.S. 2nd Circuit Court of Appeals on Monday. The petition to review NHTSA’s order was filed by California, Maryland, New York, Pennsylvania and Vermont.
For the full story click here.