Potential Billion-Dollar Penalties Loom For Major Automakers Over Fuel Standards: Report
Portfolio Pulse from Shivani Kumaresan
President Biden's proposal to increase fuel efficiency norms by 2032 could lead to penalties of $6.5 billion for General Motors (GM), $3 billion for Stellantis (STLA), and $1 billion each for Ford (F) and Volkswagen (VWAGY). The American Automotive Policy Council, representing these companies, has expressed concerns about the Department of Energy's plans to alter the Petroleum Equivalency Factor, which could lead to higher compliance costs for U.S. carmakers.
October 03, 2023 | 10:52 am
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NEGATIVE IMPACT
Ford could face a $1 billion penalty due to new fuel efficiency norms.
The proposed fuel efficiency norms could lead to significant penalties for Ford, potentially impacting its financial performance and stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
General Motors could face a $6.5 billion penalty due to new fuel efficiency norms.
The proposed fuel efficiency norms could lead to significant penalties for GM, potentially impacting its financial performance and stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Stellantis could face a $3 billion penalty due to new fuel efficiency norms.
The proposed fuel efficiency norms could lead to significant penalties for Stellantis, potentially impacting its financial performance and stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Volkswagen could face a $1 billion penalty due to new fuel efficiency norms.
The proposed fuel efficiency norms could lead to significant penalties for Volkswagen, potentially impacting its financial performance and stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100