U.S. Finalizes Lower Fuel Economy Standards, Easing Requirements for Gas-Powered Vehicles

The U.S. Transportation Department has finalized new fuel economy standards that lower the required efficiency of vehicles by 2031 to a fleetwide average of 34.9 miles per gallon (mpg), down from Biden-era requirements of 50.4 mpg. This move is seen as part of efforts under President Donald Trump to support gas-powered vehicle sales and ease pressure on automakers, reversing previous policies that encouraged the production of more fuel-efficient vehicles including electric models. The new standards are expected to reduce the cost of new cars but will likely increase long-term fuel consumption and carbon dioxide emissions. The Alliance for Automotive Innovation supported the decision, stating it aligns with market conditions and customer demand, while environmental groups like the Sierra Club criticized the rollback as harmful to public health and the environment. The change comes amid rising gas prices linked to geopolitical tensions in the U.S.-Israeli war with Iran.

By https://www.facebook.com/CNBC · CNBC ·

U.S. Finalizes Lower Fuel Economy Standards, Easing Requirements for Gas-Powered Vehicles

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Topics: automotive energy_consumption environmental_policy government_regulation

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