Finance
Automakers back Trump plan to roll back fuel economy rules, but seek changes
Published by Global Banking & Finance Review®
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Automakers back Trump's fuel economy rollback but seek changes to maintain credit trading and vehicle classification, impacting fuel costs and emissions.
By David Shepardson
WASHINGTON, Feb 4 (Reuters) - Major automakers on Wednesday called for changes in the Trump administration's proposal to reform fuel economy standards, but said they back the plan to drastically slash the efficiency requirements.
The Alliance for Automotive Innovation, which represents General Motors, Toyota Motor, Volkswagen, Hyundai, Ford and other automakers, backed the reduction in stringency proposed by the National Highway Traffic Safety Administration, but asked it to not eliminate credit trading to meet regulatory requirements and reconsider plans to reclassify more vehicles as cars.
"Given the slowing growth of EV sales in the U.S. and reduced government policy support, the previously issued CAFE standards are simply unachievable," the group said.
NHTSA proposes to eliminate credit trading among automakers in 2028, and will end some credits for fuel-saving features. It would also reclassify many vehicles as cars instead of trucks, which impacts automakers since cars face more stringent standards than trucks.
PROPOSAL TO REVISE DOWN FUEL ECONOMY STANDARDS
The automakers called for continuing credits for air conditioning efficiency and other technologies.
NHTSA is proposing to revise down the 2022 fuel economy standards and then proposing to hike them between 0.25% and 0.5% annually through 2031. In 2022, under Biden, NHTSA increased fuel efficiency by 8% annually for model years 2024-2025 and 10% for 2026.
Biden's rules sought to prod automakers to build a rising number of EVs to comply, but would not have forced an immediate end to gas-powered vehicles.
NHTSA estimates the proposed rule would reduce average up-front vehicle costs by $930, but would increase fuel consumption by around 100 billion gallons through 2050 - and cost Americans up to another $185 billion for fuel and increase carbon dioxide emissions by about 5%.
(Reporting by David Shepardson in Washington; Editing by Franklin Paul and David Holmes)
Fuel economy refers to the distance a vehicle can travel per unit of fuel consumed, typically measured in miles per gallon (MPG) or liters per 100 kilometers (L/100km).
Credit trading allows automakers to buy and sell credits for exceeding or failing to meet fuel economy standards, providing flexibility in compliance with regulations.
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