Skip to main content

Obama set to announce new fuel economy standards today

Chevy Volt-Alaska
Image used with permission by copyright holder

It seems that the Obama administration has brought months of negotiations with automakers on new fleet-wide MPG targets to an amicable close. The new CAFE, or corporate average fuel economy, standard to be announced today requires automakers’ entire fleet average 54.5 miles per gallon by 2025.

It’s slightly less than the administration’s original target of 56.2 miles per gallon, which received a whole mess of criticism from both lawmakers and the auto producers themselves. Automakers protested because a major factor in increasing fuel economy is building lighter cars, which requires the use of expensive materials that won’t necessarily get cheaper over time like technology tends to. Automakers are thus worried that, in order to keep prices acceptable to consumers, they’ll be struggling along with razor-thin margins.

Recommended Videos

Of course, there are other ways to cut costs, and that’s why lawmakers complained. Legislators from states with lots of auto production decried the proposed standard because of its possibility to lead to layoffs. The United Auto Workers union was also quite vocal that it was worried about the higher standard affecting the work force.

However, following the decision to lower the target slightly, everyone involved seems at least outwardly at peace, with General Motors, Ford, Chrysler, Toyota and Honda all signing off on the plan. CAFE standards already are set at 35.5 mpg by 2016, but that’s still a far cry from 54.5 mpg by 2025. The thing to remember is the CAFE standards include the automakers’ entire consumer fleets, so for every electric car claiming absurd mpg numbers, there’s a big honking truck to balance out the average, although heavy duty trucks, that generally only have commercial purposes, are excluded. With studies showing that passenger vehicles use about 44 percent of the nation’s oil and account for 20 percent of its carbon emissions, the new standards have potential for a lot of impact.

What does it all mean? Well, the administration argues that consumers will pay less at the pump, while automakers say they’ll spend more at the dealership, but while both seem plausible, neither is guaranteed. The most likely changes consumers will see will be a shift towards smaller, lighter cars with an increased array of hybrid, electric, forced induction and diesel engine options.

Derek Mead
Former Digital Trends Contributor
8 key things you need to know from Apple’s WWDC 2025 event
From a fresh look and updated names, to new features, more intelligence and live translation
iOS 26, iPadOS 26 and macOS 26 shown on devices.

The WWDC 2025 keynote ran for just over an hour and a half. For those of you who don't fancy sitting through the whole presentation, we've pulled out the key things you need to know from the latest Apple event.

1. Welcome to the 26 club

Read more
Tesla’s robotaxi service is almost here, but it’s not the car you want to see
Silver Tesla Model Y Juniper side

Tesla chief Elon Musk has said that the automaker is aiming to launch its robotaxi service on June 22, in Austin, Texas.

“Tentatively, June 22,” Musk said in a post on X on Tuesday, adding: “We are being super paranoid about safety, so the date could shift.”

Read more
I tried an e-bike for the first time and now I’m hooked
It’s not about being a 'bike person', it’s about finding small upgrades to everyday life
A woman sitting on the Aventon Pace 4

Before this year, I’d never even touched an e-bike before, and the thought of riding one was never on my radar. With life already in constant motion thanks to two toddlers, biking wasn’t something I ever considered adding to the mix.

I’d always assumed e-bikes were for hardcore commuters or serious cyclists, not someone like me. I wasn’t looking for a big lifestyle change. I just wanted a quicker way to get to the park so we’d have more time to play before dinner.

Read more