On the Dash:
- GM says it will keep investing in EVs despite new federal fuel economy rules.
- The final rule sets a 34.9 mpg target for 2031 and $0 penalties.
- Ultium Cells will add 500 jobs for LMR battery cell production by 2028.
Speaking Tuesday at this year’s Automotive News Congress conference at The Department at Hudson’s, General Motors President Mark Reuss said the automaker will keep investing in electric vehicles even after the federal government relaxed fuel economy standards.Â
Reuss said changing course with each new rule costs too much, noting that GM already built its plans around EV platforms. He also noted that future spending will focus on the architecture needed to reach profitability at scale. Â
The U.S. Department of Transportation finalized the new rule Monday, one day before the conference. The National Highway Traffic Safety Administration, part of DOT, developed the standards. According to DOT, NHTSA estimates the fleet average will reach 34.9 miles per gallon by model year 2031, up from 30.1 mpg in model year 2024.
The rule covers model years 2022 through 2031, and its final 2031 target sits at just above 34.5 mpg, which the administration proposed in December. Notably, Congress had already cut civil penalties for missing the targets to $0 in a budget law signed in July 2025.Â
Transportation Secretary Sean P. Duffy said in a DOT statement, “Thanks to President Trump’s leadership, we have finally ended the illegal mandate that forced automakers to produce more expensive electric vehicles.”
Ultimately, the DOT estimates that this will reduce the average cost of a new vehicle by $1,300 for American families and save $138 billion over the next five years.Â
