On the Dash:
- Lower standards could give automakers more room to build trucks, SUVs and other higher-demand vehicles.
- Reduced fuel-economy requirements could slow the regulatory push toward EVs and other highly efficient vehicles.
- Dealers may see broader availability of vehicles that better match consumer preferences.
On Monday, Transportation Secretary Sean Duffy said that the Trump administration will soon finalize significantly lower vehicle fuel-economy standards, reversing the previous administration’s push to require automakers to produce more fuel-efficient vehicles.
The National Highway Traffic Safety Administration (NHTSA) proposed in December lowering fleetwide fuel-economy requirements for model years 2022 through 2031. Under that proposal, automakers would need to reach a fleetwide average of 34.5 miles per gallon by 2031, down from the 50.4 mpg target set under former President Joe Biden.
Duffy called the new standard a “common-sense” approach at an appearance in Sterling Heights, saying it would let automakers build vehicles that Americans actually want to buy rather than models he said the previous administration pushed onto the market. He argued the earlier rules put pressure on consumers to adopt specific vehicle technologies instead of following demand.
The final rule would give automakers more flexibility in product planning, easing pressure to prioritize highly efficient vehicles. The change could support continued production of larger trucks and SUVs while giving manufacturers more room to balance EVs, hybrids and internal combustion vehicles.
Dealer impact
Dealers could see a wider mix of vehicles that better match current demand as automakers gain more flexibility to focus on trucks and SUVs. The change could also shape future inventory planning as OEMs adjust their product strategies around the new standards.
