The US Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) announced new fuel economy standards which follow President Biden’s executive order to drive American leadership forward on clean cars.
It had previously been announced that the US is returning to stricter fuel efficiency standards, however, this gives the measures some teeth. The new Corporate Average Fuel Economy (CAFE) standards will require an industry-wide fleet average of approximately 49 mpg for passenger cars and light trucks starting from the model year 2026. In addition, the new standards are to increase fuel efficiency by 8% annually for model years 2024-2025, and up to 10% annually for the model year 2026. Further, they will also increase the estimated fleetwide average by nearly 10 miles per gallon for the model year 2026, relative to the…
