The U.S. National Highway Traffic Safety Administration (NHTSA) on Sunday reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements for model years 2019 and beyond.
The decision was a win for Tesla (TSLA.O) that could cost other automakers hundreds of millions of dollars or more.
Confirming an earlier report by Reuters, NHTSA said the decision "increases the accountability of manufacturers for violating the nation’s fuel economy standards" and the penalty increase "incentivizes manufacturers to make fuel economy improvements."
President Donald Trump's administration in its final days in January 2021 delayed a 2016 regulation that more than doubled penalties for automakers failing to meet Corporate Average Fuel Economy (CAFE) requirements starting in the 2019 model year.
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