President Donald Trump is set to announce a significant “reset” of federal fuel standards, which had recently been tightened under the Biden administration. This shift, according to the White House, is projected to save American families a staggering $109 billion in total.
Ford CEO Jim Farley expressed support ahead of the announcement, emphasizing that the new standards would align fuel economy regulations with market realities. He stated, “We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability. This is a win for customers and common sense.”
The announcement is expected to take place in the Oval Office, where executives from Ford, Stellantis, and a representative from General Motors will be present. Trump aims to unveil what his administration calls a “historic reset” of the Corporate Average Fuel Economy (CAFE) standards, originally established in 1975 to improve fuel efficiency and reduce emissions.
During his previous term, Trump rolled back more stringent regulations from the Obama administration, with the Biden administration subsequently implementing stricter standards. Under Biden, the fuel efficiency requirements were increased by 8% for the 2024 and 2025 model years and 10% for 2026, a stark contrast to the 1.5% increase finalized during Trump’s administration for model years 2021 to 2026.
The Biden administration’s regulations were projected to add nearly $1,000 to the average price of a new car compared to the standards Trump intends to implement. The Trump White House claimed that the previous regulations were unrealistic in relation to existing technology for gasoline vehicles and would encourage an unnecessary push towards electric vehicles.
Stellantis CEO Antonio Filosa echoed the sentiment that the new standards would provide customers with increased freedom and affordability in vehicle choices. He expressed eagerness to work with the administration to ensure that the automotive industry remains robust while adhering to responsible environmental policies.
General Motors noted support for the proposed CAFE rule, indicating a desire for a unified national standard that balances consumer choice with market stability. The automaker remains committed to providing a diverse range of both electric and traditional gasoline-powered vehicles.
Since resuming his role in the Oval Office, Trump has consistently targeted vehicle and environmental regulations, claiming they unjustly impose electric vehicle mandates on consumers while inflating costs. Earlier this year, he signed a resolution that effectively dismantled California’s electric vehicle mandate, which aimed to phase out gasoline-only vehicles by 2035.
The forthcoming announcement signals a pivotal moment for the automotive industry, with potential implications for consumer choices and the broader market landscape. As discussions around vehicle regulations continue, many in the industry watch closely for the anticipated changes and their impact on the future of transportation in America.