President Donald Trump announced on Wednesday (December 3) that his administration will "reset" fuel efficiency standards for passenger cars. The decision aims to address rising auto prices amid inflation and affordability concerns. The previous rules, designed to lower carbon emissions, "put tremendous upward pressure on car prices," Trump stated in the Oval Office.
The proposed changes will lower fuel economy requirements for new vehicles, a move expected to save Americans $109 billion over five years and reduce the average cost of a new car by $1,000. The Department of Transportation projects that the new standards will set the industry fleetwide average for light-duty vehicles at approximately 34.5 miles per gallon by the 2031 model year.
The announcement marks a significant shift from the Biden administration's stricter standards, which aimed to promote electric vehicle sales and reduce greenhouse gas emissions. Trump criticized the previous standards as a "green new scam" that forced automakers to use expensive technologies, driving up costs and prices.
Automakers, including executives from Ford, General Motors, and Stellantis, supported the rollback. Ford CEO Jim Farley described the move as "a win for customers and common sense," while Stellantis CEO Antonio Filosa appreciated the alignment of standards with "real world market conditions."
However, environmentalists expressed concern over the rollback, warning it could increase gasoline consumption and emissions. Dan Becker, director of the Safe Climate Transport Campaign for the Center for Biological Diversity, stated, "Gutting the (gas-mileage) program will make cars burn more gas and American families burn more cash."
The updated standards will undergo a formal rulemaking process before being finalized, likely in 2026.