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

(Refiles to spell out "billion" in headline)

WASHINGTON, Sept 28 (Reuters) - General Motors will see its technology costs decline by $20.4 billion through ‌2031 as a result of drastically lower vehicle fuel economy rules ‌finalized Monday, the US Transportation Department said.

In total, the Trump administration estimates automakers' technology costs will ​decline by $60.6 billion through 2031, or about $1,289 per vehicle, as a result. The 2024 fuel economy rules had been estimated to cost GM $31.7 billion through 2031.

The new rule is expected to take effect around early December. Automakers will not need to ‌add expensive emissions equipment ⁠to reduce fuel consumption or build more EVs, as they would have had to under the prior rule in order to ⁠meet more stringent requirements.

The department's National Highway Traffic Safety Administration (NHTSA) said Chrysler-parent Stellantis's costs will decline by $6.6 billion, Ford by $5.8 billion, Toyota by $4.5 billion and Honda by $4.1 ​billion.

GM said ​it supports the goals of the ​rule and its "intention to better align ‌fuel economy standards with market realities."

Last year, Congress passed legislation ending penalties for not meeting fuel economy requirements after Stellantis paid about $775 million in civil penalties for failing to meet US fuel economy requirements since 2019.

GM paid $128.2 million in penalties for 2016 and 2017. GM also paid a $145.8 million penalty and ‌forfeited fuel economy credits worth hundreds of millions ​of dollars at the time after a government ​investigation found excess emissions from ​approximately 5.9 million GM vehicles.

In 2023, under former President Joe ‌Biden, NHTSA said its proposal to ​hike fuel economy standards ​through 2032 would cost the industry $14 billion in projected fines including $6.5 billion for GM, $3 billion for Stellantis and $1 billion for Ford Motor.

The final ​rule adopted in 2024 ‌eased requirements and said the auto industry would face no more than $1.83 ​billion in fines from 2027 through 2031.

(Reporting by David Shepardson; ​Editing by Nick Zieminski and Jonathan Spicer )