US Fuel-Economy Standards Lowered for New Vehicles
The United States has finalised new fuel-economy standards for new vehicles, lowering the requirements automakers will face through the coming model years.
The US Transportation Department announced the rule on September 28, marking a major change from fuel-efficiency standards finalised in 2024. The latest rules give automakers more flexibility in deciding the mix of gasoline-powered vehicles, hybrids and electric vehicles they produce.
The new standards are expected to reduce some costs for vehicle manufacturers and buyers. The Transportation Department said the changes are intended to make new vehicles more affordable and expand consumer choice.
However, lower fuel-economy requirements also mean vehicles can use more fuel. Reports says that government estimates indicate the change will increase fuel consumption and carbon dioxide emissions over coming decades compared with the previous standards.
The new policy also affects the auto industry’s transition toward electric vehicles. The previous 2024 rules were designed to steadily increase fleet fuel economy through 2031. Those rules had projected an industry-wide average of about 50.4 miles per gallon for that model year.
The latest changes therefore give manufacturers greater room to continue producing gasoline-powered cars, SUVs and pickup trucks.
The impact will extend beyond automakers. Vehicle prices, fuel consumption, demand for gasoline and the pace of investment in electric vehicles could all be affected as manufacturers adjust their future product plans.
The final standards apply to future vehicle model years, meaning their effects will develop gradually rather than changing the fuel economy of cars already on US roads.
