Fuel-Economy Standards Cut
President Trump Approves Plan to Cut Fuel-Economy Standards and Lower Car Prices
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President Donald Trump said he had approved new fuel-economy standards reversing Biden-era requirements, saying the change would lower car prices, expand U.S. manufacturing and give consumers more choices. The final rule and its technical details were not immediately released, but an earlier proposal would lower the fleetwide target for cars and light trucks to about 34.5 miles per gallon by model year 2031, from roughly 50.4 mpg under the Biden standards. The Biden policies did not require consumers to buy electric vehicles, but weaker standards could make gas-powered pickups and SUVs more attractive to automakers and reduce incentives to produce EVs. Transportation Secretary Sean Duffy said a further announcement was planned for Monday; critics said the change may have limited practical force because Congress eliminated penalties for automakers that miss fuel-economy targets.
Key Points
1
Trump said more than $100 billion was being invested in U.S. auto manufacturing and named Michigan, Ohio, Indiana and South Carolina among the states where he said plants and jobs were returning. He also claimed GM, Ford and Stellantis executives had asked to expand U.S. production.
2
The CAFE program dates to 1975 and has been updated periodically, generally to require vehicles to become more fuel-efficient.
3
Politico reported that experts viewed the fuel-economy rollback as less consequential than the EPA’s February move to undo motor-vehicle climate rules, including the scientific finding underlying them. University of Maryland professor Joshua Linn said eliminating noncompliance penalties had turned CAFE standards into a “suggestion.”
4
Although weaker standards could make EVs less attractive to automakers, CNBC reported that General Motors had said it would continue making electric vehicles.
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