DaimlerChrysler gets record $30M CAFE fine

When Corporate Average Fuel Economy regulations were instituted by the US Congress in the mid-seventies, the law included fines for automakers who failed to meet the standard. The first company to fall prey to CAFE fines was Jaguar in 1983 when they paid $57,970 to the National Highway Traffic Safety Administration ( NHTSA). NHTSA is the agency that actually sets the rules for CAFE, calculates the averages and administers the fines.
Over the years, carmakers have been fined a total of $735,422,635.50 for selling cars and trucks that use too much fuel. NHTSA has just released the latest list of fines including those for the 2006 model year. DaimlerChrysler got a record fine of $30,257,920 for that model year almost double the $16,895,472 they paid the previous year. The previous record went to BMW in 2001 when they paid almost $28 million. As the new standards increase over the next decade, companies that produce a lot of high performance cars like Mercedes and BMW will likely be paying a lot more in fines unless they start selling a lot of hybrids and diesels.

[Source: NHTSA]

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