Automakers' profits expected to improve following US fuel economy regulation easing
STLA Stellantis N.V
$4.27 -4.04%
View chart & analysis → - 1The US National Highway Traffic Safety Administration significantly lowered the fuel economy target for light-duty vehicles to 34.9mpg through 2031 in late September.
- 2The US Congress voted last year to abolish fines previously imposed on automakers for failing to comply with regulations.
- 3If regulatory changes do not occur, the hybrid market share is projected to increase from 14% last year to approximately 34% by the end of the decade.
So what's the key point?
The US has decided to lower fuel economy standards and remove fines. This allows car companies to reduce the costs associated with complying with regulations.
Source CNBC · View original ↗
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