Appeals Court rejects Tesla’s request for automakers to pay higher penalties for failing to meet fuel economy standards

In April last year Tesla asked the Second Circuit US Court of Appeals to quickly reinstate higher penalties on automakers failing to meet Corporate Average Fuel Economy (CAFE) requirements.

The penalties were supposed to start in the 2019 model year, but that date was pushed to the 2022 model year by the Trump Administration.

The court rejected Tesla’s initial claim, citing an ongoing review of the automaker’s vehicles by the National Highway Traffic Safety Administration (NHSTA).

Tesla followed up with another claim in August, again asking the court to take immediate action.

On Thursday, the Court of Appeals rejected Tesla’s second claim, according to Reuters.

A group representing General Motors, Toyota, Ford and Volkswagen unsurprisingly opposed Tesla’s request. They argued the additional costs will hurt traditional automakers while benefiting only a few, like Tesla, who can sell credits.

“That Tesla might benefit from more certainty about the worth of the CAFE credits that it has amassed is hardly a reason to cut off an ongoing administrative process,” the group told the appeals court.

One automaker, Stellantis, said the additional penalties could add up to nearly $600 million. Fiat Chrysler, which joined with PSA Group to form Stellantis, paid nearly $150 million failing to meet the requirements in 2016 and 2017.

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