The Trump administration is set to undo one of former President Obama’s signature achievements. On Tuesday, the EPA and the Transportation Department are expected to jointly announce the rollback of fuel efficiency requirements for the nation’s auto fleet, a move that will not require the approval of Congress.
In the wake of the financial crisis and the crumbling of top U. S. automakers, the federal government bailed out General Motors and Chrysler, while other companies were severely damaged and barely survived the downturn. With their backs against the wall, the Obama administration was able to push through historic fuel efficiency requirements, known as corporate average fuel economy (CAFE) standards, the most stringent in decades. For cars made between 2012 and 2016, car companies had to achieve an average fuel economy of 35.5 miles per gallon, up from 25 mpg previously. For model years 2017-2025, fuel efficiency had to jump to 54.5 mpg.
The requirements have successfully boosted the efficiency of the nation’s auto fleet, with cars and trucks steadily achieving ever higher ratings on fuel efficiency. Car companies have ratcheted up efficiency on multiple fronts, introducing new electric vehicles and electric-hybrid models, while also boosting the fuel efficiency of traditional cars and trucks.
This post was published at FinancialSense on 03/06/2017.
Follow on Twitter
Recent Comments