GM Tech Costs Drop $20.4 Billion Under 34.9 MPG US Rule
Updated
Updated · Yahoo Finance · Sep 28
GM Tech Costs Drop $20.4 Billion Under 34.9 MPG US Rule
3 articles · Updated · Yahoo Finance · Sep 28
Summary
$20.4 billion in projected technology costs will be cut for General Motors through 2031 under fuel-economy rules finalized Monday, the Transportation Department said.
The new 34.9 mpg standard sharply eases the prior Biden-era path toward 50.4 mpg, letting automakers avoid adding costly emissions equipment or building more EVs to comply.
$60.6 billion in industrywide savings are projected through 2031—about $1,289 per vehicle—with Stellantis saving $6.6 billion, Ford $5.8 billion, Toyota $4.5 billion and Honda $4.1 billion.
The rule is expected to take effect in early December and follows years of compliance penalties, including about $775 million paid by Stellantis and $128.2 million by GM for earlier shortfalls.
Supporters say the rollback better matches market demand and lowers vehicle costs, while critics say weaker standards will raise gasoline use and emissions over time.