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National Auto Dealers Association (NADA)Dec 4, 2025 2:35:46 PM1 min read

NHTSA Proposes a Comprehensive Reset of Fuel Economy Standards

NHTSA Proposes a Comprehensive Reset of Fuel Economy Standards
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The National Highway Traffic Safety Administration (NHTSA) is set to overhaul Corporate Average Fuel Economy (CAFE) standards starting with 2022 model year vehicles. This comes after findings from the Trump administration that previous standards improperly factored in the efficiency of non-gas vehicles, resulting in unachievable requirements.

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The new standards were set by excluding ZEV and PHEV cars from the equation. Now, manufacturers must meet a fleetwide average of roughly 34.5 mpg.  The goal was to balance fuel-economy improvements with vehicle affordability so that manufacturers can offer a range of vehicles with different powertrains based on what consumers want to buy.  

The proposed rule will not take effect until it is finalized, which could take several months.

NADA CEO Mike Stanton released the following statement after the announcement:

“NADA has advocated for regulations that protect consumer choice and vehicle affordability for decades. The comprehensive reset of CAFE standards proposed today represents a milestone in that effort, and we commend the Trump Administration for its leadership on the issue.

“If finalized, these regulations would craft standards that can be met with a range of technologies. This would enable manufacturers to produce vehicles suited to a wide spectrum of consumers with varying budgets and fuel preferences.

America’s franchised automobile dealers support CAFE standards that are technologically feasible, economically practical, and in line with customer demand for affordable, fuel-efficient vehicles.”

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National Auto Dealers Association (NADA)

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