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.
Read: Doom: Trump CAFE Standard Rollback Could Maybe Possibly Cost Drivers Up To $7000! »
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