Trump administration cuts US fuel-economy targets
Words: Kyle Cassidy
The Trump administration has finalised weaker fuel-economy standards for new vehicles, lowering the projected US fleet average for 2031 from 50.4 miles per gallon to 34.9mpg.
Announced on 28 September, the change rolls back requirements introduced under Joe Biden and gives manufacturers more room to sell petrol-powered vehicles. The figures equate to approximately 4.7L/100km and 6.7L/100km respectively, using US gallons.
Those conversions illustrate the scale of the change, rather than providing figures directly comparable with the WLTP ratings familiar to Kiwi buyers. Corporate Average Fuel Economy, or CAFE, is a regulatory fleet calculation, rather than a consumption target every individual vehicle must meet.
Cheaper cars, but what about fuel bills?
The US Department of Transportation argues the revised standards will reduce the average upfront cost of a new vehicle by around US$1300 and give manufacturers greater flexibility over their powertrain offerings.
It also claims lower prices will encourage buyers into newer, safer vehicles. These are the administration’s projected benefits, rather than guaranteed savings at the dealership.
Environmental group the Natural Resources Defense Council disputes the affordability argument, saying weaker standards will leave motorists spending more on petrol while worsening pollution.
The organisation points to NHTSA’s earlier proposal, which estimated an additional US$1400 in fuel costs over the average vehicle’s lifetime. That estimate relates to the proposal, rather than a confirmed outcome under the final rule.
The Alliance for Automotive Innovation, representing major manufacturers, welcomed the reset as better aligned with market conditions. However, it also called for lasting regulatory stability and achievable standards that continue improving efficiency.
SUVs face a classification shake-up
The overhaul also changes how vehicles qualify as light trucks from the 2030 model year.
Currently, manufacturers can design and equip small crossovers to enter that category, which carries less demanding efficiency requirements than passenger cars. The department says revised criteria will better reflect how vehicles are intended to be used.
It expects the classification mix to shift from roughly 70 per cent light trucks to around 70 per cent passenger cars.
Separately, CAFE credit trading will end from the 2028 model year. The system allows manufacturers exceeding their efficiency requirements to sell credits to others needing help to comply.
For Kiwi buyers, any consequences are likely to emerge through future product decisions. Less pressure to improve American fleet efficiency could influence where global manufacturers direct investment, although the effect on models offered here remains uncertain.
