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Carmakers Get Break on Fuel Economy Rules as EV Demand Slows

  • Earlier proposal was met with fierce pushback from industry
  • US says rules will reduce gas consumption, save on fuel costs

The final rule takes into account the amount of money carmakers have been spending on new electric car models.

Photographer: Justin Sullivan/Getty Images
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The Biden administration is easing requirements for automakers to increase the fuel efficiency of new cars following industry pushback.

Carmakers must reach an average of 50.4 miles per gallon across their fleet by the 2031 model year under a final rule announced Friday by the US National Highway Traffic Safety Administration. The new standard is a 1.4 mile-per-gallon increase from 2026 targets but less than the 58 miles per gallon that the agency had proposed previously.