auto dealer in black and red logo
MenuMENU
SearchSEARCH

Final Fuel-Economy Rule Sets Lower Bar

Automakers must now achieve less-ambitious average for passenger cars, light trucks.

June 10, 2024
Final Fuel-Economy Rule Sets Lower Bar

The new targets stand in stark contrast to the 13 miles per gallon the average U.S. vehicle got when Congress introduced fuel-economy standards in the 1970s.

Credit:

Pexels/Erik McIean

2 min to read


The Biden administration finalized updated fuel-economy standards that are looser than proposed last year so that automakers can now achieve a lower bar over the next decade on new models’ fuel consumption.

Instead of an average fuel economy of about 58 miles per gallon for their fleets, companies must now achieve about a 54 miles per gallon threshold by 2032.

The bar-raising comes after demand for purely electric vehicles flattened in the U.S. following early adoption, failing to meet automakers’ ambitious estimates.

The new targets stand in stark contrast to the 13 miles per gallon that the average U.S. vehicle got when Congress introduced fuel-economy standards in the 1970s, the Department of Transportation said.

The final updated rule requires passenger cars’ fuel economy to increase 2% per year for model years 2027 to 2031 and light trucks’ to increase by the same measure for model years 2029 to 2031. The department said the gradual change will save owners more than $600 in fuel costs over their vehicles’ lifetimes and nealrly 70 billion gallons of gas by 2050.

“Not only will these new standards save Americans money at the pump every time they fill up, they will also decrease harmful pollution and make America less reliant on foreign oil,” U.S. Transportation Secretary Pete Buttigieg said in a press release.

The new rule complements a similarly scaled-back Environmental Protection Agency regulation of tailpipe emissions. Automakers can comply with the new standards with a mix of power train technologies, including hybrids and alternative-fuel vehicles.

LEARN MORE: EV Consideration Falls Further

 

 

 

More Industry

Front of large glass-paned, multistory office building
Industryby Hannah MitchellJuly 17, 2026

Toyota Financial Services Adds to HQ

The subsidiary says the new Texas facility is designed to foster collaboration and innovation with the aim of future growth.

Read More →
Tiny toy car falling out of jar of coins. “The $1K Payment”
Industryby Lauren LawrenceJuly 17, 2026

Four-Figure Loan Payments on the Rise

A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.

Read More →
Auto Dealer Today, Dealer Debrief 07/10/2026, with Lauren Lawrence
Industryby Lauren LawrenceJuly 10, 2026

Dealer Debrief: New-Vehicle Sales Update

In this week's debrief, host Lauren Lawrence discusses the state of new-vehicle sales.

Read More →
Ad Loading...
Handful of colorful crayons.
Industryby Hannah MitchellJuly 10, 2026

Color Your Ride

The first vehicles by startup automaker Slate will come with the option of a medley of wraps in five colors familiar from your childhood.

Read More →
silver SUV, gray floor, yellow wall
Industryby Lauren LawrenceJuly 10, 2026

China Leads Global EV Sales

Globally, electric-vehicle sales are continuing their upward trajectory, buoyed by Chinese exports, as the North American region continues to lag behind.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Ad Loading...
white electric car charging at an outside port
Industryby Lauren LawrenceJuly 2, 2026

Optimized Charging Could Reduce Costs

According to an Alliance for Automotive Innovation analysis, optimized EV charging could cut costs for drivers and improve grid infrastructure - potential adoption incentives.

Read More →
Closeup photo of a new white car on a road from the driver's side
Industryby Hannah MitchellJune 26, 2026

June Automotive Boon?

A forecast for this month’s new-vehicle sales tells a familiar 2026 story: Year-over-year comparisons must be made in light of last year’s aberrations.

Read More →
Seatbelt clip on infographic.
Industryby Lauren LawrenceJune 26, 2026

Safety Improvements Save Lives

Over the past 30 years, automakers have made many safety tweaks to their vehicles. An insurance industry testing group says that's largely thanks to its crash-worthiness program and that prevented fatalities are the clear result.

Read More →
Ad Loading...
Photo of three Chrysler Pacifica minivans, one each red, white and blue
Industryby Hannah MitchellJune 19, 2026

Indiana Dealership Changes Hands

The Chicago-area CDJR store has been in business for nearly 70 years and is now part of a fast-growing automotive group spread across six states.

Read More →