DOT Trims Some Fuel-Economy Targets for Future Vehicles in Final Standards

By Ben Glickman

U.S. regulators settled on a less stringent set of fuel-efficiency standards for light-duty cars and trucks than initially proposed, easing pressure on car makers to ramp up electric-vehicle sales as demand falters.

The National Highway Traffic Safety Administration released a finalized proposal on Friday for fuel-economy standards in vehicle model years 2027 to 2031, which would result in an average light-duty vehicle fuel economy of about 50.4 miles per gallon of fuel by 2031.

The previous proposal, outlined last year, would have required automakers to sell vehicles with an average of about 58 miles per gallon by 2032. The regulations do not require the sale of electric vehicles, but compliance by companies would likely require higher sales of zero-emission cars and trucks.

The eased-back regulations come as carmakers face slouching demand for electric vehicles from more hesitant American consumers, prompting manufacturers to cut prices and shift focus to hybrids.

The final rule from the Biden Administration's Department of Transportation will require 2% increases in fuel economy for passenger cars from model year 2027 to 2031, and a 2% increase per year for light trucks from 2029 to 2031.

NHTSA said the new standards would save Americans over $23 billion in fuel costs and reduce pollution.

The finalized rule cuts down on fuel-economy requirements for light-duty truck. Under the previous proposal, standards for light trucks would increase 4% a year for model years 2027 to 2031.

Write to Ben Glickman at [e-mail]

(END) Dow Jones Newswires

06-07-24 1550ET