FI showroom red and grey logo
MenuMENU
SearchSEARCH

NHTSA Final CAFE Ruling to Hike Fines for Automakers

With the new ruling, fines for vehicles that fall short of fuel economy standards will cost automakers at least $1 billion annually.

March 29, 2022
NHTSA Final CAFE Ruling to Hike Fines for Automakers

 

Credit:

Creative Commons

2 min to read


The U.S. National Highway Traffic Safety Administration (NHTSA) recently reinstated high penalties for automakers whose vehicles do not meet fuel efficiency requirements for models made in 2019 and on.

The decision could cost automakers hundreds of millions of dollars or more.

Ad Loading...

NHTSA reported the decision "increases the accountability of manufacturers for violating the nation’s fuel economy standards" and the penalty increase "incentivizes manufacturers to make fuel economy improvements."

The move comes after the Trump Administration delayed a 2016 regulation that more than doubled penalties for automakers failing to meet Corporate Average Fuel Economy (CAFE) requirements as of the 2019 model year.

The final rule, which goes into effect 60 days after it is published, reinstates the higher penalties and and increased them further for the 2022 model year. The agency did not collect penalties for 2019 to 2021 model years while the rule was under review.

The change puts the fine at $14 for 2019 to 2021 model years for every 0.1 mile per gallon new vehicles fall short of required fuel economy standards. This amount is multiplied by the number of noncomplying vehicles sold. The fine rises to $15 for the 2022 model year.

Automakers warned in 2016 the fines could increase industry costs by at least $1 billion annually.  

Ad Loading...

Automakers whose vehicles achieve higher fuel economy than required, such as Tesla, can sell credits to automakers that do not meet CAFE rules.

NHTSA estimates that for the 2019 model year alone, automakers will owe $294 million at the new rate, up from $115.4 million under the old rate.

The organization hopes to continue raising these fines. In August, NHTSA proposed boosting CAFE requirements by 8% annually for 2024 through 2026. NHTSA will issue its final CAFE rules through 2026 this week.

Originally posted on Auto Dealer Today

More Showroom

Green road sign that says California Ave
Showroom•by Lauren Lawrence•October 21, 2026

California Sees Quarterly Gains

California’s new-vehicle market saw a boost in hybrids in the third quarter and its first overall quarterly market gain of the year.

Read More →
Silver Subaru STI parked in lot.
Showroom•by Lauren Lawrence•October 14, 2026

New-Vehicle Prices Stay Put

Affordability pressures and model availability shaped new-vehicle sales in September, according to an analysis by Kelley Blue Book.

Read More →
White electric vehicle parked at charging station.
Showroom•by Lauren Lawrence•October 12, 2026

EV Buyer Consideration Shifts

What drives American consumers to purchase an electric vehicle is shifting as the question moves away from Should I?' to 'Which features and experience do I want to have?'

Read More →
Ad Loading...
Door handle in interior of new-looking vehicle
Showroom•by Hannah Mitchell•October 1, 2026

Year-to-Date Auto Sales Holding Their Own

A forecast through August shows that automakers have shifted strategies to keep deliveries and revenues up despite tariffs and other economic challenges.

Read More →
Interior of BMW ix3 electric SUV with hilly landscape seen through windshield
Showroom•by Hannah Mitchell•September 28, 2026

Slow to Robo

Ten years of polling consumers shows autonomous vehicles’ profiles have risen considerably, but even more people now want at least some level of control if they go that route.

Read More →
Photo of red SUV parked outside a car dealership after dark
Showroom•by Hannah Mitchell•September 9, 2026

Dealers a Little Down

A third-quarter Cox Automotive survey finds them in a mixed mood, bummed by fallen customer traffic but encouraged by better profits, costs and EV interest.

Read More →
Ad Loading...
Silver car driving down road with graphic that says “Europe Plugs In”
Showroom•by Lauren Lawrence•September 9, 2026

European EV Sales Skyrocket

The EV market on the continent held strong in July with almost 25% of new-car sales being fully electric units, a stark contrast to the U.S., where EV sales declined about 42%.

Read More →
Mitsubishi shadow line-up
Showroom•by Hannah Mitchell•August 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
A rear view of a red Hyundai Elantra
Showroom•by Hannah Mitchell•August 17, 2026

Used Lots Getting the Business

Many consumers are seeking out the units to save money, and the demand – higher in July than normal – is keeping supply limited and prices up.

Read More →
Ad Loading...
outside shot of two trucks in front of a body of water with a cloudy sky
Showroom•by Lauren Lawrence•July 29, 2026

Used Market Stabilizes

The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.

Read More →