Drive for Change: U.S. Eases Fuel Economy Standards

The U.S. Transportation Department announced a shift in fuel economy standards, claiming the previous administration's projections were based on an overestimation of electric vehicle adoption. The new rules, revealed on Friday, are part of the department's 'Resetting the Corporate Average Fuel Economy Program' (CAFE).

Transportation Secretary Sean Duffy emphasized making vehicles affordable and manufacturing more efficient, challenging the legality of earlier CAFE standards meant to boost electric vehicle production. Senate Republicans, led by Commerce Committee Chair Ted Cruz, support these changes through tax legislation, proposing to eliminate fines associated with unmet CAFE requirements.

Automakers like Stellantis and GM have backed the proposal, citing difficulties in compliance with current standards and advocating for solutions that align with market realities. The revised requirements are set to gradually increase fuel efficiency targets but also consider the flexibility needed by the automotive industry.

(With inputs from agencies.)