P&A Providers & Administrators
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.

Ad Loading...

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.

Ad Loading...

Originally posted on Auto Dealer Today

More Industry

Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →
Headshot photo of Antonio Filosa, Stellantis CEO
Industryby Hannah MitchellMay 19, 2026

Stellantis to Dive Into U.S. Lending

The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.

Read More →
Photo of the rear of a new BMW iX SUV
Industryby Hannah MitchellMay 12, 2026

New-Vehicle Prices Rise

With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.

Read More →
Ad Loading...
Graphic of car segments' results the previous week
Industryby StaffMay 12, 2026

Black Book: Weekly Market Update

Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.

Read More →
Graphic of last week's estimated used retail days to turn
Industryby StaffMay 6, 2026

Black Book: Weekly Market Update

Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.

Read More →
cargo ship with vehicles, at dock
Industryby Lauren LawrenceMay 5, 2026

EU Auto Association Urges Action

Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.

Read More →
Ad Loading...
two people working on a paper contract together
IndustryMay 1, 2026

Driving into the Super CFC Era

Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.

Read More →