Overview
- The plan would cut the 2031 fleetwide fuel-economy goal from about 50.4 mpg to roughly 34.5 mpg, revising the pace of required efficiency gains.
- The rule would eliminate CAFE credit trading starting with model year 2028 after earlier moves set noncompliance fines to $0, erasing a key EV compliance incentive and revenue stream for some automakers.
- Ford, GM and Stellantis endorsed the rollback, and GM CEO Mary Barra said the prior targets could have forced plant shutdowns if EV sales failed to grow fast enough.
- President Trump said he will not reimburse automakers for investments made under Biden-era EV policies.
- The White House says the reset will reduce vehicle costs and enhance safety, but analysts from Edmunds and ACEEE caution sticker-price relief is uncertain and fuel expenses could rise, while the Sierra Club warns of health impacts.