Overview
- Announcing the move alongside a rollback of fuel-economy rules, the president told Transportation Secretary Sean Duffy to clear regulatory barriers so new kei-style vehicles can be produced and sold in the U.S.
- The Department of Transportation says it is working with NHTSA to “clear the deck,” though no formal rule changes or safety-standard waivers have been issued.
- Kei vehicles do not meet current U.S. crash and Federal Motor Vehicle Safety Standards, and existing pathways mostly allow imports only once vehicles are 25 years old with state registration rules varying widely.
- The White House indicated eligible models must be manufactured in the United States, adding significant retooling, cost, and production hurdles for automakers.
- No carmaker has committed to U.S. production or pricing, as analysts question demand for ultra-compact vehicles in a market dominated by larger trucks and SUVs.