Overview
- The National Highway Traffic Safety Administration published a final rule on Monday that cuts the federal CAFE fleetwide target for model year 2031 from 50.4 mpg to about 34.9 mpg.
- The rule removes inter‑manufacturer CAFE credit trading starting in model year 2028 and creates a new Light Duty Work Factor for classifying vehicles beginning with model year 2030.
- The Department of Transportation says automakers could save roughly $60.6 billion in compliance technology costs through 2031, with large firms like GM projected to save over $20 billion.
- NHTSA’s own impact analysis forecasts billions more gallons of fuel burned and quantifies public‑health effects through 2050, including hundreds of emergency room visits and several hundred premature deaths.
- California and environmental groups have announced plans to sue, automakers and trade groups have welcomed the change, and analysts warn the rollback could slow U.S. electrification and weaken competitiveness with stricter EV markets in China and the EU.