Overview
- Draft CAFE rule would lower the 2031 fleetwide average to roughly 34.5 mpg and end the credit-trading program starting with model year 2028.
- Congress previously eliminated EV purchase tax credits and set monetary penalties for missing CAFE targets to $0, weakening enforcement regardless of the new proposal.
- Ford and Stellantis chiefs stood with President Trump at the announcement, and GM’s Mary Barra later said Biden-era targets could have forced cuts to gasoline models.
- Energy-efficiency and environmental groups dispute claims of cheaper cars, warning of higher lifetime fuel costs and increased emissions, and AP analysis finds quick price relief unlikely.
- Trump said automakers will not be reimbursed for past EV investments, reinforcing the administration’s shift away from policies that favored electric vehicles.