Key Takeaways
- NHTSA new fuel economy standards offer relief to GM, Ford, and Stellantis, with less stringent requirements for model years 2027-2031.
- Fuel efficiency will rise 2% per year for new vehicles, reaching 50.4 mpg by 2031, easing pressure on automakers.
- Despite lower standards, NHTSA expects significant fuel cost savings and emission reductions through 2050.
The National Highway Traffic Safety Administration (NHTSA) has finalized its fuel economy standards for new vehicles for model years 2027-2031. The new Corporate Average Fuel Economy (CAFE) requirements are significantly lower than originally proposed, spelling good news for GM, Ford, and Stellantis.
The NHTSA’s new ruling will see fuel economy rise by 2% per year starting in 2027, while light trucks like the Ford F-150 will increase at the same rate starting in 2029. This should result in an increased fleet-wide average fuel economy of 50.4 mpg by 2031 – lower than last year’s original 58 mpg proposal.
Meanwhile, heavy-duty truck and van fuel efficiency is set to hike by 10% per year for model years 2030-2032 and 8% per year for model years 2033-2035, resulting in an average of approximately 35 mpg by 2035.
Good News For Detroit’s Big Three
The more stringent 58 mpg fleet average by 2031 proposal for passenger vehicles and light-duty trucks by NHTSA was a bane to GM, Ford, and Stellantis, which would face billions in fines if the CAFE requirements were not softened.
Tesla, which sits on a goldmine of credits for its EV lineup, won’t be happy with this new ruling. Even before the finalized figures, the Texas-based automaker expressed its wish for more aggressive CAFE requirements, amounting to an annual increase of 6% for cars and 8% for trucks. Tesla believes its numbers will do better to “conserve energy and address climate change.”
OFFICIAL: NHTSA Makes Automatic Emergency Braking Compulsory From 2029
The federal agency believes AEB has the potential to save at least 350 lives a year. Automakers have until September 2029 to meet these requirements.
Savings In Fuel Costs And Emissions
NHTSA’s finalized fuel economy standards complement EPA’s emission standards, which drew flak from 25 states. The agency believes the standards will save almost 70 billion gallons of gasoline through 2050 and prevent more than 710 million metric tons of carbon dioxide emissions by the same year.
Despite the lower fuel economy standard, the NHTSA still estimates fuel cost savings over the lifetime of their vehicles. Passenger car and light truck owners can expect more than $600 in savings, while heavy-duty pickup and van owners can expect more than $700.
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