President of the United States Donald Trump announced a new proposal to reduce the rigidity of federal fuel economy standards (known as CAFE standards) for passenger vehicle manufacturers. According to him, relaxing the norms will reduce manufacturing costs and make the purchase of a car much more affordable for American families. The proposal projects a total savings of $109 billion for Americans over the next five years, which translates to a savings of $1,000 on the average cost of a new vehicle for families. The proposal will now enter a 45-day public comment period once it is published in the Federal Register. The new regulation would significantly lower the efficiency targets, according to the National Highway Traffic Safety Administration (NHTSA). The average fuel economy for passenger cars and light trucks would be set at approximately 34.5 miles per gallon (close to 6.7 km/l) for the 2031 model year, a notable decrease from the 50.4 miles per gallon (81.4 km/l) set by the previous administration. The Department of Transportation argued that the Biden administration's standards 'far exceeded the requirements mandated by Congress,' as reported by the Argentine News Agency. President Trump defended the measure, stating that its main objective is to directly benefit consumers and the country's automotive sector. A public hearing will be held later.
Trump Announces Plan to Loosen U.S. Fuel Standards
President Trump unveiled a plan to relax federal fuel economy standards, promising $1,000 in savings for new car buyers and reduced costs for the automotive industry.