"The Trump administration announced plans Wednesday to lower fuel economy standards for cars and light trucks sold in the United States. With CEOs from Ford and Stellantis in attendance, President Donald Trump rolled back fleet-wide fuel economy from 34.5 miles per gallon by 2031. The previous fuel economy standard was for new vehicles to have 50.4 mpg by 2031. The regulation change also reclassifies crossovers as cars instead of light trucks."
"The White House claims that existing regulations would have caused automotive prices to increase by $1,000 per vehicle. The previous Trump administration made the same argument in 2020, when it last rolled back fuel economy standards. Since that rollback, though, the price of a new vehicle have climbed to new heights, topping $50,000 on average, as automakers discontinued low-end models to capitalize on consumer's preferences for SUVs. Larger vehicles use more material, thus costing more to make, while also getting lower fuel economy."
"Consumers' choices appear to run counter to the administration's contention that lower fuel economies are in the car-buying public's interests. For instance, hybrid sales are up significantly this year over last and momentum continues. Hybrid sales grew 6% in October over the previous month. Experts doubt that lower fuel economy standards will change the trajectory of new vehicle prices. Many vehicles are developed with global markets in mind, and most of those still value efficiency."
Federal fuel economy standards for cars and light trucks were reduced, replacing the prior 50.4 mpg 2031 target with a 34.5 mpg fleet-wide goal by 2031. Crossovers were reclassified as cars rather than light trucks. The administration argues that stricter rules would raise vehicle prices by about $1,000 per vehicle and will allow the Department of Transportation to permit production of very small cars similar to those in Japan and South Korea. New vehicle prices have nonetheless risen above $50,000 on average as automakers dropped low-end models and consumers favored larger SUVs, while hybrid sales continue to grow and global markets still prioritize efficiency.
Read at TechCrunch
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