Highway Agency Tosses Obama Proposal to Raise Fuel Economy Fines

  • NHTSA says fines are exempt from law on inflation adjustment
  • BMW, Jaguar, other luxury brands have paid highest penalties

Vehicles drive along Interstate 80 in Berkeley, California.

Photographer: Justin Sullivan/Getty Images

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The Trump administration threw out steeper fines proposed by Obama-era regulators for automakers that fail to meet tougher fuel economy standards, a boost for luxury brands like Jaguar, BMW and Porsche that have paid the highest penalties in the past.

The National Highway Traffic Safety Administration, in a filing late Friday, said fines for breaching Corporate Average Fuel Economy, or CAFE, standards at the current rate. A 2015 proposal by the Obama administration, to take effect for the 2019 model year, would have more than doubled the civil penalties on manufacturers.