CAFE Rollback Eases Stellantis Kokomo's Engine Math, Not the Legal Risk

The federal CAFE rollback eases the standards that previously targeted roughly 50 miles per gallon by 2031, and it ends tradeable compliance credits starting with model year 2028. Stellantis is slated to build its new GMET4 EVO four-cylinder engine in Kokomo starting this year, and the rollback reduces the compliance penalty on four-cylinder-heavy fleets. That eases Stellantis's fleet-average math. It does not guarantee order volume through 2031. A Sierra Club challenge to the rollback is pending, and a future administration could reinstate tighter standards. If you supply Kokomo's engine line, tie your capacity commitments to Stellantis volume guarantees. Those hold up longer than a federal rule still in court.