A new initiative has been passed in the US, meaning less fuel-efficient cars will be on the roads in America. The US Corporate Average Fuel Economy system means that US carmakers have to make sure the cars they sell, on average, meet a certain fuel-efficiency level.
In 2024, the Biden administration finalised rules meaning that new cars and small trucks sold in the US would become much more fuel-efficient by 2031, with manufacturers’ fleets averaging about 50.4 miles per gallon.
The Trump administration has now replaced that trajectory with a 34.9 miles per gallon fleet average for 2031. That’s about 31% lower.
The US department of Transportation say the new initiative will reduce the average cost of a new vehicle by $1,300 (£990) for American families – but the industry isn’t agreeing that the initiative is positive.
Bob Keefe, Executive Director of E2 (a nonpartisan group of business leaders, investors and professionals) said: “Soaring fuel costs are already squeezing businesses and consumers. This regulation only makes America’s affordability crisis worse.
“With lower standards, automakers are incentivised to maintain the status quo. Keeping more gas guzzlers on the road instead of encouraging automakers to make more efficient vehicles means more demand for gas and diesel, higher prices and more pain at the pump.”
The new standards will apply to vehicle model years from 2022 to 2031.
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