Automakers Must Still Contend With Updated CAFE Standards
by Scott Vigneault, on December 13, 2016
It will be difficult for President-elect Trump to quickly reverse the latest CAFE standards.
Once the U.S. Presidential election ended, industry leaders all over the country had a number of questions about how a changing administration will affect federal rules governing their businesses.
First in line is the auto industry, which is particularly focused on the implementation of the Environmental Protection Agency's updated Corporate Average Fuel Economy standards. The latest rules mandate that automakers will raise average fuel efficiency of new cars and trucks to 54.5 miles per gallon by 2025.
"Achieving a high average fuel economy will require the manufacturing of many more hybrid and fully-electric vehicles."
While the Obama Administration was committed to those figures, some automakers expected the incoming Trump Administration to support their delay. Meanwhile, however, the EPA announced on Nov. 30 that it would leave these standards in place until 2025, according to the Financial Times. President-elect Trump could try to reverse them once he takes office, but it would be a lengthy process involving a new rule making period and a technical analysis, the news source added.
Assuming these rules continue to hold through a Trump Administration, the industry faces several supply chain challenges. Achieving a high average fuel economy will require the manufacturing of many more hybrid and fully-electric vehicles, as it will not be possible to raise efficiency levels for every single vehicle model. The industry will have to shift production in several ways, placing a new emphasis on batteries without allowing costs to spiral out of control.
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