U.S. Loosens Fuel Economy Standards Amid Electric Vehicle Debate
The U.S. Department of Transportation has declared previous fuel economy standards based on electric vehicle uptake exceeded authority. New rules aim to make U.S. vehicles more affordable. Senate Republicans propose eliminating fines for not meeting standards, while Stellantis supports this proposal for automotive relief.
The U.S. Department of Transportation on Friday announced the loosening of fuel economy standards by asserting that former President Joe Biden's administration had overstepped its bounds by factoring a high adoption rate of electric vehicles into their calculations.
This declaration came with the publication of the final 'Resetting the Corporate Average Fuel Economy Program' (CAFE) rule, a policy direction intended to adjust previous ambitious standards and aid affordable vehicle manufacturing.
In response, Senate Republicans put forth a proposal to eliminate fines for automakers failing to comply with fuel standards, receiving support from companies like Stellantis, viewing it as necessary relief for the industry.
(With inputs from agencies.)
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