How much has that fuel economy standard cost drivers since Obama implemented it?
Trump Mileage Rollback Could Cost Drivers Up to $7,000 More in Gas
Like the $5,000 checks Pres. Donald Trump is promising voters if they keep Republicans in power during the upcoming midterm elections, you might be a bit skeptical about the promised savings from the rollback of federal mileage standards the White House announced this week.
Starting with TDS
According to U.S. Transportation Sec. Sean Duffy, automakers could save more than $60 billion by cutting the cost of the technology needed to reach an industry average 50.4 miles per gallon by 2031. In turn, some of those savings will be passed onto consumers, the administration claims – to the tune of an average $1,289 per vehicle come the 2031 model year.
Even if that proves accurate, the equation actually doesn’t favor buyers. By its count, the Department of Transportation acknowledged the typical driver will wind up paying about $1,600 more for fuel under the new mandate – which reduces the 2031 model year target to just 34.9 mpg. And that appears to be a significant under-estimate. Depending upon what the average price of fuel works out to come the beginning of the next decade, Autoblog’s math puts the potential out-of-pocket increase as high as $7,000.
Pres. Donald Trump has moved to roll back or eliminate a variety of Biden-era automotive regulations since returning to office 20 months ago. Many are related to EVs, including the phase-out of $7,500 federal tax credits in September 2025. This week’s move formalizes a proposal he announced from the Oval Office last December, surrounded by auto industry leaders like Ford CEO Jim Farley. Taking effect at the end of this year it abandons Corporate Average Fuel Economy guidelines calling for 8% annual increases, targeting 50.4 mpg during the 2031 model year.
Trump is ending that increase, and, really, what it means to you is that manufacturers do not need to keep doing this that and the other to get the 50.4 average across its fleet of sales. They do not have to push EVs, which lose them vast sums of money. They can cut the auto engine idle/start stop from vehicles. I doubt that there will be much of a decrease across the lines, since they are already making them, and hybrids are getting more and more popular. I love the 39.5 mpg I get in my hybrid CRV. I wouldn’t go back.
But, what if manufacturers want to come out with more 6 cylinders and 2.0 turbos? This will allow for that. It should be the consumer driving what they want manufacturers to make, not Los Federales.
Automakers and oil industry representatives had called for a rollback in the mileage standards and the industry will now have to hit a target of 34.9 mpg. For automakers like General Motors that should ease the burdensome task of meeting the higher mandate: developing more efficient powertrains, including EVs and hybrids; new, lightweight materials; and other advanced technologies.
There is a massive difference between 34.9 and 50.4. The question now is “will manufacturers put that savings into price reductions of vehicles?” Post COVID the price of new went up $4000-$6000 on average.
People who are concerned with the costs of fuel can always buy a plug-in electric vehicle or a hybrid, but, as always, the best-selling new vehicle in the United States is the Ford F-150.
When it comes to not trucks, the best sellers are the RAV-4 SUV and some other larger vehicles.
The CAFE standards did nothing to improve fuel efficiency. All the CAFE standard does is transfer Automaker profits on larger vehicles to the Government based on the MPG of the entire fleet of vehicles sold.
There is no magical technology that can generate the power to move x tones of vehicle at y accelerate rate. The heavier the vehicle, the more energy is required. This is inescapable physics. The old story of the magical carburetor that would let muscle cars get 100 MPG, but was bought by “Big Auto” and hidden in a vault was just a fantasy. The whole world moved to fuel injectors. If “big Auto” could make more fuel efficient models that people would buy, THEY WOULD. A government mandate doesn’t create new technology out of thin air. This was the criticism of the CAFE law back when it was passed.
Anecdote: In 2003, the 4th gen Toyota 4 runner with a V-8 engine, could get 22 MPG. The 2022 model, 5th gen, with a V-6 gets 22 MPG. The 6th gen model, with turbo charged V-4 engine… 22 MPG. The Hybrid model… 23 MPG.
Progress!!
How much heavier were the later models? Wouldn’t that affect mpg
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I’m old enough to remember when Cadillac had to dramatically cut back the size of the trunk in their models to get the weight down, and the cars looked like absolute poop.
Then the Escalade. Since it is a different Cafe category,it’s ok that it has less mpg. Unintended consequences strikes again. Same for the growth in pickup truck size. Larger trucks = different CAFE categories and worse MPG acceptable.