Daily Management Review

Ford estimates impact of Biden's fuel economy initiative at $1bn in potential fines


Ford, the American carmaker, calculated that the US President Joe Biden administration's plan to increase fuel efficiency rules may result in $1 billion in fines between 2027 and 2032, writes Bloomberg.

"This is alarming in and of itself and threatens significant economic hardship for Ford," the company stated. Bloomberg adds that manufacturers of trucks and SUVs will be impacted by the new environmental requirements as well, with Stellantis NV, Ford, and General Motors Co. among those who will suffer the most.

The goal of Joe Biden's administration's effort is to encourage the switch to electric vehicles and lower the amount of hazardous pollutants. The National Highway Traffic Safety Administration of the United States proposed the average fuel consumption indicator to be introduced by 2032 and set at 58 miles per gallon.

One of the biggest strikes in history started in mid-September with employees of the "big three" American automakers: Ford, General Motors Co., and Stellantis NV. The strikers are requesting increased pay and perks. The corporations respond by saying that this will cause them to go bankrupt.

source: bloomberg.com