Few Automakers Following CAFE Standards

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Oct. 19, 2019—The federal government is prepared to levy big fines against automakers that fail to keep up with the Corporate Average Fuel Economy (CAFE) targets.

The Detroit Free Press reports that Fiat Chrysler is on the hook for $79.4 million for missing the target in the 2017 model year. That follows a similar fine for the 2016 model year.

For comparison, the company reported $8.16 billion in gross profits for 2018.

Farther down in the Free Press story is information from the National Highway Traffic Safety Administration that shows few companies are keeping up with the goals set in the federal rule. Just five of 18 automakers in the U.S. market are hitting the targets for the 2017 model year. Eight qualified in the model year prior.

"NHTSA’s projections show more manufacturers are failing to comply in model years 2018 and 2019, and the potential penalties on automakers, which are passed along to consumers, are expected to continue to increase," the agency told the Free Press in a statement.

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