US government lowers fuel economy standards to 2014 levels
The Department of Transportation has finalized new Corporate Average Fuel Economy (CAFE) standards, rolling back requirements significantly. The new target is 34.9 mpg by model year 2031.
The U.S. Department of Transportation has significantly lowered the nation's fuel economy standards. New Corporate Average Fuel Economy (CAFE) rules reduce the required efficiency to a level not seen in over a decade. The new target is 34.9 miles per gallon (mpg) by model year 2031.
The change represents a substantial rollback from previous standards, including those in place during the prior Trump administration. Earlier set, higher standards would have required automakers to sell more electric and plug-in hybrid vehicles.
The new regulations criticize the use of emissions credits and eliminate them starting with model year 2028. Furthermore, electric and plug-in vehicles will no longer be counted toward an automaker's fleet average in the same manner, reducing incentives for cleaner vehicle development.
The shift could impact automaker strategies and investments in cleaner technology development, potentially leading some manufacturers to abandon electric and plug-in hybrid models.