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

man buckling seatbelt in car with gray interior
Awardsby Lauren LawrenceSeptember 3, 2026

Two New Rides Earn Safety Awards

Thanks to vehicle redesigns, two more vehicles have earned IIHS’ Top Safety Pick+ award that builds on the criteria of the lower Top Safety Pick award.

Read More →
Photo of phone on a surface next to a window
IndustrySeptember 1, 2026

How A Simple Phone Call Can Cause a Dealership Data Breach

Despite the sophisticated techniques fraudsters often employ today to gain access to dealerships’ valuable information, they sometimes use a somewhat old-fashioned approach.

Read More →
front of car dealership Acura of Rio Grande
Industryby Lauren LawrenceAugust 28, 2026

Texas Rooftop Gets New Owner, Name

Family-owned Lumos Auto Group acquired Acura of the Rio Grande Valley from Bill Bird and will operate the dealership as Lumos Acura.

Read More →
Ad Loading...
Businessman in a suit speaking on stage at an event with '2026 CEO Investor Day' displayed in background
Industryby Hannah MitchellAugust 28, 2026

Hyundai Feeling Electric

As the automaker looks to the balance of the decade, it plans to significantly boost its electrified powertrain lineup, including more hybrids and its first extended-range EVs.

Read More →
Auto Dealer Today, Dealer Debrief, 08/26/2026 with Lauren Lawrence
Industryby Lauren LawrenceAugust 26, 2026

Dealer Debrief: Luxury Brands are Losing Ground

The quality gap between luxury and mass-market auto brands is narrowing. Today, Lauren is discussing why.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
Ad Loading...
Six men standing in front of a Ford dealership.
Industryby Hannah MitchellAugust 14, 2026

Longtime Ford Store Changes Hands

The Virginia dealership joins a small area automotive group in a one-dealership transaction, moving from one family franchisee to another.

Read More →
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
Arm of mechanice reaching for car with hood open
Industryby StaffAugust 13, 2026

ASE Seeks Accurate Technician Pay, Benefits Data

New free membership trial removes cost barrier for dealerships and shops willing to contribute anonymous information to the industry data exchange.

Read More →
Ad Loading...
Photo of Dodge Durango moving down a road in sunlight
Industryby Hannah MitchellAugust 7, 2026

No Longer Worth the Price?

Mass-market auto brands are gaining ground on luxury competitors with what used to be premium features, helped along by the pressure of high vehicle prices dogging budget-conscious shoppers.

Read More →