US sharply weakens fuel economy requirements for new cars

The administration of US President Donald Trump has finalized new fuel economy standards for passenger cars and light trucks. Requirements for automakers are being significantly relaxed compared to the rules adopted under the previous administration.

According to the new rule of the National Highway Traffic Safety Administration (NHTSA), the average fuel economy of the vehicle fleet by the 2031 model year should be about 34.9 miles per gallon, or approximately 6.7 liters per 100 km. The previously existing standards envisioned increasing the average to about 50.4 miles per gallon by 2031.

The US Department of Transportation explains the revision as a way to lower the cost of new cars and give manufacturers more freedom in shaping their model lineups. According to the department's estimates, the new requirements could reduce the average car price by about $1,300, and the total savings for Americans over five years are valued by the authorities at $138 billion. These figures are the administration's own forecast.

The rules for vehicle classification will also change. Starting with the 2030 model year, some small crossovers that are currently categorized as light trucks and are subject to less stringent standards will be classified as passenger cars. The NHTSA expects this will reduce the incentive for manufacturers to specifically alter vehicle designs to fit a more favorable category.

In addition, from the 2028 model year the regulator intends to eliminate the CAFE credit trading system, which allowed manufacturers with more efficient model lineups to sell excess credits to other automakers. This system is especially beneficial to electric vehicle manufacturers.

The previous standards were approved in 2024 and called for annual tightening of requirements for passenger cars and pickup trucks. At that time, the NHTSA estimated that stricter rules would save almost 70 billion gallons of fuel by 2050.

At the same time, estimates of the impact of the new decision differ. The administration believes that easing the standards will reduce production costs and car prices. Analysts interviewed by The Washington Post note that some of the potential savings may not reach buyers, while owners of less fuel-efficient vehicles will spend more on fuel.

For automakers, the decision means a noticeable reduction in regulatory pressure on vehicles with internal combustion engines. However, the industry's global shift towards hybrids and electric vehicles will continue: automakers must consider not only American regulations but also the requirements of other major markets.

Source materials: US Department of Transportation, NHTSA, The Washington Post