The new rule significantly alters the Corporate Average Fuel Economy (CAFE) standards, reducing the target from 50.4 miles per gallon to 34.9 mpg by 2031. While the Biden administration recently increased fuel efficiency requirements for various model years—8% for 2024 and 2025, 10% for 2026, and 2% per year from 2027 to 2031—this new rule provides automakers with more flexibility in production, which is expected to lower the average cost of new vehicles by $1,300.
According to Jonathan Morrison, the administrator of the National Highway Traffic Safety Administration (NHTSA), the changes will enable more American families to afford newer vehicles and let automakers design vehicles that meet consumer demand. The Alliance for Automotive Innovation, representing many car manufacturers, supports the adjustments, arguing they better align with current market conditions.
However, not all responses have been positive. Democratic Senator Edward Markey criticized the Trump administration’s earlier standards, alleging they jeopardized economic stability amid rising gas prices.
Additionally, the new rule shifts how vehicles are classified. Starting with the 2030 model year, more accurate classification criteria will be implemented to better reflect a vehicle’s intended use, potentially changing the market mix from 70% light trucks to 30% passenger cars, reversing the current trend.
