Automakers Support Trump's Plan to Ease Fuel Rules, But Want Modifications

• NHTSA's proposed rollback would reduce average vehicle costs by $930 upfront but increase fuel consumption by 100 billion gallons through 2050, costing Americans up to $185 billion more in fuel and raising CO2 emissions by 5%
• Automakers oppose eliminating credit trading among manufacturers in 2028 and want to maintain credits for fuel-saving technologies like air conditioning efficiency
• The proposal would reclassify many vehicles from trucks to cars, impacting automakers since cars face more stringent fuel economy standards than trucks

Summary: Automakers Support Trump's Plan to Ease Fuel Rules, But Want Modifications

The Alliance for Automotive Innovation, representing major automakers including General Motors, Toyota, Volkswagen, Hyundai, and Ford, expressed support for the Trump administration's proposal to significantly reduce fuel economy standards, while requesting specific modifications.

Key Proposals and Positions:

The National Highway Traffic Safety Administration (NHTSA) plans to revise down 2022 fuel economy standards and increase them by only 0.25%-0.5% annually through 2031. This contrasts sharply with Biden-era rules that mandated 8% annual increases for 2024-2025 and 10% for 2026.

Industry Concerns:

Automakers cited "slowing growth of EV sales" and "reduced government policy support" as reasons the previous standards were "unachievable." The alliance opposes NHTSA's plan to eliminate credit trading among automakers in 2028 and end credits for fuel-saving features. They also object to reclassifying many vehicles as cars instead of trucks, which would subject them to more stringent requirements.

Economic and Environmental Impact:

NHTSA estimates the proposed rule would reduce average vehicle costs by $930 but increase fuel consumption by approximately 100 billion gallons through 2050. This would cost Americans up to $185 billion in additional fuel expenses and increase carbon dioxide emissions by roughly 5%.

Industry Requests:

The automakers are seeking continued credits for air conditioning efficiency and other fuel-saving technologies, along with maintaining the credit trading system that provides regulatory compliance flexibility.

The proposal represents a significant rollback of environmental regulations, prioritizing near-term affordability over long-term fuel efficiency and emissions reduction goals.