- The Trump administration has confirmed radically weakened fuel economy standards.
- Automakers are now expected to hit a fleet average of 34.9 mpg, down from 50.4 mpg.
- Trump claims it will make cars more affordable, but doesn’t help with high gas prices.
President Trump teased the news over the weekend, and now we have the confirmation and the numbers to go with it. Strict fuel economy standards set by the Biden administration have been rolled back, allowing automakers to make thirstier cars that could cost American drivers cost less to buy.
The Department of Transportation and National Highway Traffic Safety Administration say automakers will now need to achieve a fleet-wide average of 34.9 mpg for cars and light trucks by MY31. That’s a huge drop from the 50.4 mpg they would have been required to meet under the old Biden rules.
“Thanks to President Trump’s leadership, we have finally ended the illegal mandate that forced automakers to produce more expensive electric vehicles that American families didn’t want,” Secretary of Transportation Sean Duffy said. There never was an EV mandate, but Duffy is dead right that US drivers are mostly not interested in EVs. Sales have dropped since EV tax credits were axed to less than 6 percent market share.
The Trump administration claims the shift could make new cars more affordable for Americans, the DOT suggesting it could chop $1,300 off the price of a new car and save consumers $138 billion over five years. But celebrating thirstier cars when gas has jumped over 50 percent in seven months and is now almost $4.50 per gallon is a bold move.
Detroit’s Thumbs-Up
Automakers including General Motors, Ford and Stellantis have voiced their support for the rollback, the Alliance for Automotive Innovation trade body saying the new rules “better align fuel economy standards with market conditions.”
But they still have some re-aligning of their own to do, because under the new rules it will be harder to classify crossovers and road-biased SUVs as light trucks to benefit from less stringent mpg standards.
No More Credit Swaps
The NHTSA is also outlawing the practice of automakers trading CAFE (Corporate Average Fuel Economy) credits. In the past EV brands like Tesla could sell credits to makers of combustion cars, generating billions of dollars of additional income. The White House said the ability to sell credits “artificially propped up the EV industry” at the expense of other automakers.
Lower MPG Means More Emissions
Environmental campaigners are understandably less than thrilled with the new mpg rules, and not just because it makes life harder for EV brands.
“Less fuel-efficient cars mean more gas burned, spending more at the pump, and dirtier air in our communities,” The Sierra Club said. “Americans need relief from high costs, but instead Trump is giving automakers a free pass on pollution and handing families the bill – at the pump and with their health.”
Do you support the mpg rollback? Are you looking forward to more V8 muscle cars like the Mustang Dark Horse SC (below) or are you concerned that the lack of regulation will make American automakers fall behind, just as the threat from China is starting to loom large? Drop a comment and let us know.
White House, Stellantis, Ford, Tesla, GM
