Tesla is urging the United States to adopt stricter fuel efficiency rules

WASHINGTON, Oct 17 (Reuters) – Electric car maker Tesla (TSLA.O) on Tuesday urged the Biden administration to finalize tougher fuel economy standards through 2032 than U.S. regulators have proposed.

The National Highway Traffic Safety Administration (NHTSA) in July proposed raising CAFE requirements by 2% and by 4% for trucks and SUVs annually between 2027 and 2032. Tesla wants the agency to finalize rules that make cars more stringent. by 6% annually and 8% for trucks and SUVs, saying it is better to “conserve energy and address climate change.”

NHTSA’s proposal would result in a fleet-wide average fuel efficiency of 58 miles (93 km) per gallon by 2032.

Tesla’s position puts it at sharp odds with major automakers.

On Monday, a group representing General Motors (GM.N), Toyota Motor (7203.T), Volkswagen (VOWG_p.DE) and nearly all other major automakers criticized NHTSA’s proposal, saying it was unreasonable and demanding major revisions.

The American Automotive Policy Council, a group representing the Detroit Three automakers, separately urged NHTSA to halve proposed fuel economy increases to 2% annually for trucks, saying the proposal “would disproportionately impact the truck fleet.”

The group noted that 83% of vehicles produced by Ford (FN), GM and Chrysler parent Stellantis (STLAM.MI) are trucks.

NHTSA said in response that its rule is “focused on saving Americans money at the gas pump and promoting American energy independence” and estimated that the combined benefits of the proposal exceed the costs by more than $18 billion.

The Automotive Innovation Alliance said last month that automakers would face more than $14 billion in fines for non-compliance between 2027 and 2032.

Toyota said on Tuesday that the fines are “evidence that there is not enough technology to meet the proposed standards and that these standards have been set beyond the maximum possible extent.” US automakers separately warned that the fines would cost General Motors $6.5 billion, Stellantis $3.1 billion, and Ford $1 billion, citing National Highway Traffic Safety Administration projections.

Automakers also raised alarm over the Energy Department’s proposal to majorly revise how the petroleum equivalent fuel economy rating for electric vehicles is calculated in NHTSA’s CAFE program, saying it would “reduce the fuel economy value of electric vehicles by 72%.”

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