Federal MPG Rollback Sparks Legal Clash and Industry Strategy Shifts
The Trump administration finalized new Corporate Average Fuel Economy (CAFE) standards, lowering the 2031 vehicle efficiency requirement to 34.9 miles per gallon, a sharp drop from the 50.4 mpg target set under the Biden administration. This move eliminates federal incentives for electric vehicles and is expected to increase gasoline consumption and pollution. California, which faces some of the nation's highest fuel costs, is preparing to challenge the rule in court, arguing it undermines state climate goals. While automakers like Stellantis welcome the relaxed standards, General Motors has signaled it will maintain long-term EV investments despite the regulatory shift.