TSLA404.110-5.88%
GM72.630-0.47%
F13.0600.03%
RIVN12.900-0.45%
CYD50.420-0.02%
HMC25.3200.11%
TM185.470-1.9%
CVNA63.415-2.605%
PAG156.460-3.29%
LAD257.090-7.8%
AN178.590-3.35%
GPI305.470-11.71%
ABG177.5001.22%
SAH72.870-1.19%
TSLA404.110-5.88%
GM72.630-0.47%
F13.0600.03%
RIVN12.900-0.45%
CYD50.420-0.02%
HMC25.3200.11%
TM185.470-1.9%
CVNA63.415-2.605%
PAG156.460-3.29%
LAD257.090-7.8%
AN178.590-3.35%
GPI305.470-11.71%
ABG177.5001.22%
SAH72.870-1.19%
TSLA404.110-5.88%
GM72.630-0.47%
F13.0600.03%
RIVN12.900-0.45%
CYD50.420-0.02%
HMC25.3200.11%
TM185.470-1.9%
CVNA63.415-2.605%
PAG156.460-3.29%
LAD257.090-7.8%
AN178.590-3.35%
GPI305.470-11.71%
ABG177.5001.22%
SAH72.870-1.19%

NHTSA proposes new fuel-economy standards for the 2027 to 2032 model years

Ann Carlson said, “Overall, customers will save, which is a really important message.” 

Ann Carlson, NHTSA”s acting administrator

Federal officials are recommending tighter fuel economy requirements for light-duty cars and trucks, claiming that the revised regulations would reduce pollution and save consumers at the pump. 

For model years 2027 to 2032, the National Highway Traffic Safety Administration on July 28 proposed new fuel-economy rules that would limit how far a gallon of gasoline could take a vehicle in the U.S. By 2032, instead of the current model year 2026 requirement of 49 miles per gallon, automakers would have to sell a portfolio of light-duty vehicles averaging 58 miles per gallon.

Although the plan from the agency does not require automakers to offer EVs, it will compel the industry to dramatically increase EV sales in order to comply with the new regulations. 

During a conference call with reporters, Ann Carlson, NHTSA’s acting administrator, said, “Overall, customers will save, which is a really important message.” 

However, questions remain about how quickly American car buyers will warm to battery-powered cars, accounting for roughly 7% of U.S. sales today. Automakers are confronting several hurdles in electrifying their lineup and persuading consumers to choose EVs.  

EV leader Tesla, in recent months, has reduced prices on EVs, prompting Ford and others to follow suit. However, the Environmental Protection Agency, EPA, proposed separate rules that govern tailpipe emissions. Meeting those requirements would require two-thirds of new vehicles sold to be electric by 2032. 

Whereas the lobbying group criticized the EPA proposal when it was initially released in April of 2023, calling it out for being unreasonable and unattainable. On July 28, the group also said it would review NHTSA’s proposal for fuel economy, and it was encouraged that the two agencies appear to sync their proposals. 

The NHTSA announced it would take comments on the proposal for the following 60 days before finalizing the proposal.

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