The revised Corporate Average Fuel Economy standards will save automakers $60.6 billion in technology costs through 2031, or about $1,289 per vehicle, according to the U.S. Transportation Department. General Motors alone will see costs drop by $20.4 billion, with Stellantis saving $6.6 billion, Ford $5.8 billion, Toyota $4.5 billion, and Honda $4.1 billion.
The Trump administration argues that scaling back fuel efficiency requirements makes cars more affordable for families by reducing expensive emissions technology costs. Transportation Secretary Sean Duffy called the change "delivering relief to families and reviving the beating heart of American manufacturing." The administration estimates the rules will reduce new car prices by about $1,300.
Climate advocates dispute the affordability claim. Dan Becker, director of the Safe Climate Transport Campaign at the Center for Biological Diversity, says rolling back standards will increase gasoline usage and pollution, "costing consumers at the pump and at the doctor's office." With the national average gasoline price near $4.50 a gallon and diesel close to $6, critics argue higher fuel consumption will offset any purchase price savings.
The new rule is expected to take effect around early December. This change represents part of the Trump administration's broader effort to reverse Biden-era climate policies, including cuts to the federal electric vehicle tax credit and delays to federal EV charging program funding.