2025 has proven costly for Stellantis, which was forced to pay $190.6 million to the National Highway Traffic Safety Administration (NHTSA) for failing to comply with Corporate Average Fuel Economy (CAFE) standards. According to Reuters, the penalties mainly concern models produced between 2019 and 2020, when the automaker fell short of U.S. regulatory requirements.
Stellantis pays $190.6 million in fines for failing to meet U.S. CAFE standards
The fines were paid in two installments: $78.3 million in March and $112.3 million in June. With this latest blow, the group’s total payouts for emissions-related violations since 2018 now exceed $773 million, highlighting how non-compliance with environmental regulations can weigh heavily on automakers’ finances.
The CAFE system allows companies that exceed efficiency standards, such as Tesla and Rivian, to sell credits to those that fail to meet the targets. For EV-focused manufacturers, this has become a goldmine: Tesla alone earned $2.8 billion from credit sales in 2024. However, that business model may shrink following the Trump administration’s decision to eliminate penalties starting with the 2022 model year.
Politically, the issue has fueled tensions. The NHTSA previously criticized the Biden administration for being overly optimistic in projecting rapid EV adoption. Initial estimates suggested CAFE requirements could cost automakers up to $14 billion in fines by 2032. With the rule changes approved last year, that forecast has dropped to about $1.83 billion by 2031, drastically reducing the economic burden for legacy manufacturers.
Stellantis has wasted no time recalibrating its lineup, with the iconic HEMI V8 engines reintroduced in time for the 2026 model year under the looser regulations. Still, the recent fines highlight the challenges facing brands without a significant EV portfolio.
Without a broader lineup of low-emission vehicles, automakers risk paying heavily for years to come. For Stellantis, aiming to grow in the U.S. with an increasingly electrified range, the mounting costs of recent years send a clear message: the transition must accelerate.
