The Trump government is intending to freeze penalties for auto makers who don’t meet fuel efficiency requirements across the United States, Reuters reports.
In 2015, congress ordered federal agencies to correct a range of civil penalties to account for inflation. The National Highway Traffic Safety Administration (NHTSA) below President Barack Obama subsequently issued legislation to increase fines from $5.50 to $14 for each 0.1 mile a gallon of fuel which new automobiles and trucks consume in excess of their required standards.
Unsurprisingly, automakers weren’t thrilled about this and said it could boost industry compliance costs from $1 billion annually. The Trump administration started the process of undoing the regulation shortly after being chosen and first proposed the freeze in 2018.
Also Read: California Defies Trump Administration, Sticks With Obama-Era Fuel Economy Standards
The NHTSA considers freezing the growth penalty rate will reduce the load on industry and consumers up to $1 billion annually.
The Alliance of Automobile Manufacturers (AAM), which represents groups like GM, Volkswagen, Toyota, along with Fiat Chrysler Automobiles, is (obviously) very delighted with the government’s decision.
“[The NHTSA’s] own version clearly shows the substantial economic harm such a dramatic and unjustified increase in penalties would have on auto manufacturers, workers, and ultimately customers,” AAM spokeswoman Gloria Bergquist said. The team added that the Obama government had neglected to think about the economic harm which would be caused by the greater fines.
On the other hand, environmental classes aren’t always happy and want the U.S. to keep the growth established below the former government , noting that fines have only increased from $5 to $5.50 since first being set over four decades ago.
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