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Managing Automotive

NHTSA reconsidering maximum fuel efficiency penalties

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NHTSA reconsidering maximum fuel efficiency penalties

The National Highway Traffic Safety Administration is indefinitely delaying the institution of higher maximum penalties for automakers who don’t meet fuel efficiency standards as the agency seeks further comment on the proposed change, according to two notices released. A final rule that would’ve increased the maximum penalty for exceeding Corporate Average Fuel Economy standards from $5.50 to $14 per 10th of a mile per gallon was due to take effect, but the NHTSA opted to hold off on implementing the change because it hadn’t adequately considered “all of the relevant issues.” Those issues included the possible economic consequences of increasing CAFE penalties by possibly $1 billion per year, the agency said.

[Law360]

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