Stellantis Faces $190.6 Million in US Fuel Economy Penalties

Stellantis, a global car manufacturer, has paid $190.6 million in US fuel economy penalties this year, according to an agency report. The company's net sales are distributed across various regions, with a significant presence in North America, France, Brazil, and Italy. Stellantis operates under several brands, including Abarth, Alfa Romeo, Chrysler, Citroën, and Jeep.

Title: Stellantis Faces $190.6 Million in US Fuel Economy Penalties

Stellantis, a global car manufacturer, has paid $190.6 million in US fuel economy penalties this year, according to a government report. The National Highway Traffic Safety Administration (NHTSA) revealed that the Italian-U.S. automaker paid $112.3 million in June and $78.3 million in March for shortfalls from the 2019 and 2020 model years. This brings the total penalties paid by Stellantis since 2018 to $773.5 million [1].

The penalties are part of the ongoing regulatory landscape that has seen changes under different administrations. The Trump administration's tax and budget bill ended penalties for not meeting Corporate Average Fuel Economy (CAFE) rules under a 1975 energy law, which has been a significant factor in the recent reduction in penalties [1]. However, the Biden administration has since proposed more stringent fuel economy standards, which could potentially increase future penalties [1].

Stellantis' net sales are distributed across various regions, with a significant presence in North America, France, Brazil, and Italy. The company operates under several brands, including Abarth, Alfa Romeo, Chrysler, Citroën, and Jeep [3]. Despite the penalties, Stellantis has been making strategic moves to revitalize its market position. Recently, the company unveiled the redesigned Jeep Cherokee, which features a hybrid powertrain and aims to reverse a six-year sales decline [2].

The new Cherokee model, equipped with a 1.6-liter turbocharged four-cylinder hybrid powertrain, offers an electric-only range of over 500 miles and a tech-savvy interior. The new model is priced at $36,995 and is expected to arrive at dealerships by the end of this year or early next year [2]. This launch comes as the Jeep brand attempts to overcome years of declining sales and grapples with the impact of tariff policies implemented by the Trump administration, which is expected to cost the company 150 million euros (approximately 174 million dollars) this year [2].

References

1. [1] https://finance.yahoo.com/news/stellantis-paid-190-6-million-163128637.html
2. [2] https://www.ainvest.com/news/stellantis-unveils-hybrid-jeep-cherokee-reverse-year-sales-decline-2508/
3. [3] https://www.marketscreener.com/news/stellantis-reportedly-abandons-autodrive-level-3-project-ce7c50d9db8cf624