Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Trump administration She says her suggestion to roll the car Fuel economy standards, Officially announced In the Oval Office on Wednesday, is an attempt to trim dollars from the ballooning cost of new cars in the United States.
But the intended price drops likely won’t appear in showrooms and dealer floors for months if not years, given the automakers’ long product planning schedule. It would also likely force Americans to pay more, in the long run, at another place they tend to visit frequently: the pump.
The proposal from the U.S. Department of Transportation would require automakers to reach a fleet-wide average of 34.5 miles per gallon by the 2031 model year, down from the benchmark of 50.4 miles per gallon set by the Biden administration. (Biden Era Rules called for average 49 miles per gallon in 2026.) The department estimates the change could save U.S. car buyers about $1,000 per car, adding up to $109 billion over the next five years. New cars now cost more than $49,000 on average, according to Edmunds. The government will accept public comments on the proposal until mid-January. It could be completed sometime next year.
The rollback is part of a larger federal shift in not only auto policy, but also the government’s stance on climate change. The Biden administration has taken a carrot-and-stick approach to vehicles and their environmental impact. Cars and light trucks alone are responsible for about 15 percent of greenhouse gas emissions in the United States, according to the U.S. Environmental Protection Agency. The previous administration tried to boost electric vehicle adoption by using tax subsidies for consumers and manufacturers interested in building fuel-efficient vehicles and technologies, including batteries. It also imposed penalties on those unable or unwilling to meet stricter environmental standards. The government then reasoned that carmakers should be able to meet targets for the next decade by selling more electric cars.
But with consumers failing to switch to electric vehicles as quickly as they had previously hoped, automakers have complained that the rules are too burdensome. “We have been clear and consistent: The current (fuel economy) rules established under the previous administration represent a significant challenge for automakers to achieve given the current market for electric vehicles,” John Bozzella, president and CEO of the largest auto trade organization, the Alliance for Automotive Innovation, wrote in a media release on Wednesday.
Analysts and environmental advocates say the new proposal, although aimed at making new cars more affordable, will not be a quick fix for consumers looking for price relief. “The regulatory landscape remains stop-and-start,” Jessica Caldwell, head of insights at Edmunds, said in a media release. The last Trump Management has rolled back fuel economy standards as well. What can the next president do? Meanwhile, the administration continues to debate auto tariffs, which has forced U.S. and global automakers to think not only about where to make their cars, but also where key parts and materials are made as well. This complexity adds expense to the automobile industry.
It also drives up costs for automakers: the challenge of developing new technology like automated vehicle features and figuring out how to keep selling gas-powered vehicles to Americans while drivers in other countries jump to electric vehicles. “Relaxing these requirements helps on margin, but is unlikely to significantly change the broader commitments (automakers) have already made,” Caldwell says.
The move, if completed, could be better news for gas companies. “Weakening fuel economy standards won’t do much to make cars more affordable, but it will certainly make Americans buy more gasoline,” says Albert Gore, executive director of the Zero Emissions Transportation Association, a group that represents companies up and down the electric vehicle supply chain.