US says GM tech costs to drop by $20 billion through 2031 due to new emissions rules

The Trump administration's newly finalized 2024 fuel economy rules are set to significantly reduce General Motors' technology costs by $20.4 billion through 2031, according to the US Transportation Department. This reduction represents a total projected decline in automakers' technology costs of $60.6 billion, or approximately $1,289 per vehicle, over the same period. The 2024 rules were estimated to have cost GM $31.7 billion through 2031 under the previous regulations.

Under the new rule, automakers will no longer be required to equip vehicles with expensive emissions equipment or produce more electric vehicles to meet fuel economy requirements. The National Highway Traffic Safety Administration (NHTSA) reported that GM's competitor Stellantis will see a $6.6 billion cost reduction, Ford $5.8 billion, Toyota $4.5 billion, and Honda $4.1 billion.

GM expressed support for the rule's objectives, emphasizing its alignment with market realities. Last year, Congress passed a law ending penalties for not meeting fuel economy standards following Stellantis's $775 million civil penalty for failing to meet US fuel economy requirements between 2019 and 2022. GM and other automakers also faced penalties for excess emissions from their vehicles.

In 2023, former President Joe Biden's administration projected that raising fuel economy standards through 2032 would cost the industry $14 billion in fines, including $6.5 billion for GM, $3 billion for Stellantis, and $1 billion for Ford. The final 2024 rule implemented in 2024 eases requirements, projecting no more than $1.83 billion in fines from 2027 to 2031.