The US Transportation Department (USDOT) has finalised revised fuel economy standards for passenger cars and light trucks, replacing requirements introduced under the President Biden administration.
The updated Corporate Average Fuel Economy (CAFE) rules set a fleet-wide average requirement of 34.9 miles per gallon by model year 2031, compared with 30.1 miles per gallon in model year 2024.
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The standards apply to vehicles from model years 2022 to 2031.
USDOT said the changes are intended to reduce compliance costs for manufacturers and lower new-vehicle prices.
According to the department’s estimates, the rules could reduce the average cost of a new vehicle by $1,300.
The administration said the previous CAFE requirements had encouraged automakers to invest heavily in electric vehicle production.
It argued that this had contributed to higher vehicle prices and reduced manufacturers’ flexibility to respond to consumer demand.
The final regulation will also change how certain vehicles are classified from model year 2030. Small crossover models that had been categorised as light trucks under the existing framework will be assessed based on their intended use.
NHTSA expects the adjustment to change the national fleet composition from approximately 70% light trucks and 30% passenger cars to roughly 70% passenger cars and 30% light trucks.
The revised classification system would remove incentives for manufacturers to modify vehicle designs solely to secure a light-truck designation. It said the changes could support production of smaller vehicles, including hatchbacks and estate cars.
The rules will additionally end the CAFE credit-trading programme from model year 2028. Under the previous system, manufacturers could buy and sell credits to meet fuel-economy obligations.
The department said ending the programme would require vehicle manufacturers to apply fuel-saving technologies across their own fleets.
NHTSA Administrator Jonathan Morrison said: “Newer cars are safer cars. By reducing vehicle prices, more American families will be able to afford newer vehicles, and sensible standards allow automakers more freedom to design and produce vehicles consumers actually want.”
The Alliance for Automotive Innovation, the trade group representing General Motors, Toyota, Volkswagen, Hyundai, Ford and other major automakers, said: “We’re still reviewing the final rule, but NHTSA made the right call to better align fuel economy standards with the law and current market conditions.
“The standards finalised under the previous administration effectively required a switchover to electric vehicles that was out of step with market realities and customer demand. Today’s final rule is an appropriate course correction.”
