Since taking office in January, President Donald Trump has worked to roll back or eliminate most of his predecessor Joe Biden’s efforts to impose stricter fuel economy and emissions standards, as well as incentives for electric vehicles. At least some of these goals were accomplished via a recently passed budget bill that will eliminate the federal EV tax credit at the end of September, and that piece of legislation also removes fines for automakers in regard to violating Corporate Average Fuel Economy (CAFE) standards, too.
According to InsideEVs, automakers including Ford will no longer have to pay fines for CAFE non-compliance moving forward, which is something the National Highway Traffic Safety Administration (NHTSA) has overseen for some time now. In fact, CAFE standards were signed into law way back in 1975 as a way to reduce the country’s reliance on fossil fuels amid an oil crisis, and have served to entice automakers to make more efficient vehicles as a result.
In recent years, those standards have become increasingly strict, however. Model year 2025 passenger cars are required to achieve an average of 53.4 miles per gallon, while light-duty trucks must net 38.2 mpg. In the 2027-2031 model years, those targets are set to increase by two percent annually, ultimately reaching 65 mpg for passenger cars and 45.2 mpg for light-duty trucks by 2031. Non-compliance has already cost automakers hundreds of millions in fines, with the Alliance for Automotive Innovation estimating that the stricter 2027-2031 rules could cost those same companies a collective $14 billion – while also arguing that this money could be better used to fund the ongoing EV transition.
Automakers have been using EVs as a way to help reach these goals in recent years and avoid fines, but with consumers not gravitating toward them as quickly as expected, things haven’t exactly gone to plan. As a result, Ford shifted gears and is now touting its more diverse powertrain lineup, though it continues to develop new EVs, regardless.
Comments
The article title makes it sound like it’s a bad thing the automakers do not have to fork over billions to the federal government to waste.
About the worst editorial bias we’ve seen on the site. How about, “Trump Halts Bureaucratic Fascists from Imposing Ideological Fines that Raise Your Car Prices”?
Predictable.
Good! The regulations may have started in good faith, but like so many things lately, they got completely ridiculous and out of control.
CAFE should be completely eliminated. It has been used as a political tool to eliminate ICE vehicles without overtly making ICE vehicles illegal. By making emissions standards so tight, manufacturers are forced to make overly complex engines to meet CAFE’s unattainable goals. This has been driving the price to both manufacture the engines and to repair them prohibitive.
Stomp out CARB, as well!!! A small bunch of unelected buffoons dictating to Californian’s what they can or cannot drive!! We can’t even purchase ICE lawnmowers here any longer! WTH?!?!?
Two things:
This article proves EVs aren’t that popular. If the government isn’t threatening financial ruin, no one would be making them.
“Scott free” doesn’t mean what you think…please google the Dredd Scott case. So many people don’t get it that it just gets confusing. I thought you meant Ford was still gonna pay the CAFE fees.
Hmm no mention of automakers throwing cash at Tesla for their carbon credits. Won’t have to do that anymore. What a way to smack down your ex girlfriend cheeto face.
Rent Free. 24/7
Epstein files?