Tag Archives: corporate average fuel economy” (CAFE) standards

Helping Working Americans

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I am so old I remember paying $3500 for a car and thinking that was a lot of money. Today, I might not even be able to find something that runs for that price. We live in a sprawling country, and existing without a car is difficult if not impossible. Yet car prices have soared. Some dealerships are giving five and six year loans on cars that may not even last that long. Something needs to change, and President Trump is working to make that change.

On Wednesday, The Conservative Treehouse reported:

In an effort to return common sense, practicality and affordability to the American consumer base for automobiles, President Trump announced the elimination of Joe Biden’s Corporate Average Fuel Economy (CAFE) standards for manufactured cars and trucks.

Under the auspices of the “Green New Deal”, the Biden administration mandated ridiculous quotas for EVs and demanded lower power combustible engines, or pay a climate change tax. These CAFE standards resulted in a surcharge for large vehicles, large engine autos and SUVs, and essentially bifurcated the auto consumer into those who could afford to pay for efficiency and stability, and those who could not.

“We’re officially terminating Joe Biden’s ridiculously burdensome, horrible actually, CAFE standards that impose expensive restrictions and all sorts of problems, gave all sorts of problems to automakers,” President Trump announced from the Oval Office. “It put tremendous upward pressure on car prices, combined with the insane electric vehicle mandate. Biden’s burdensome regulations helped cause the price of cars to soar more than 25%,” President Trump said.

The article concludes:

President Trump’s actions will save American families $109 billion in total over the next five years.
By helping more Americans buy newer, safer vehicles, this reset is projected to save more than 1,500 lives and prevent nearly a quarter-million serious injuries through 2050.

MARKING A CRITICAL BATTLE IN THE FIGHT AGAINST BIDEN’S HIDDEN COST-OF-LIVING INCREASES: The CAFE reset represents the latest action by President Trump to prevent the Biden EV-related policies from raising costs for Americans.

In June, President Trump signed a joint resolution to end the California EV mandates, which would have effectively been a 100% ban on new gas cars sold in the state by 2035 (with similar effects in 17 states that adopted California’s standards).

In July, President Trump signed into law the Working Families Tax Cuts Act, which set the civil penalty for violating CAFE standards to $0, protecting the U.S. auto manufacturing industry from significant fines.

Under President Trump, the Environmental Protection Agency (EPA) has also released its proposal to rescind the 2009 Endangerment Finding, which ignores Congress’ clear intent under the Clean Air Act and has been used to justify over $1 trillion in costs for the American consumers and economy.

Today’s action helps ensure that even if far-left Democrats return to power, the CAFE standards are sensible, so U.S. automakers are not held to infeasible standards.

Combined with auto loan interest deductibility for new made-in-the-USA vehicles, President Trump continues to deliver real relief that makes owning a safe, reliable car more affordable for every American family. (source)

Maybe there is a new Mustang convertible in my future!

Let’s Go Back To Real Cars With Real Engines!

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On Friday, Issues & Insights posted an article about an item in the Big Beautiful Bill that was not highly publicized.

The article reports:

One of the most important provisions in the One Big Beautiful Bill has gone completely unnoticed, but promises to make the auto industry great again.

For 50 years, the federal government has been forcing fuel economy standards on auto companies. If the average fuel economy of the cars sold in a year exceeded a federal standard, the companies had to cough up enormous penalties.

Passed in 1975 as a way to deal with an energy crisis (that was caused by government price controls), “corporate average fuel economy” (CAFE) standards – required the fleet of cars sold by an automaker to achieve an arbitrary miles-per-gallon goal. If they missed the goal, they paid hefty annual fines.

From the beginning, these standards were a disaster, forcing automakers to radically downsize their fleet, which research showed cost thousands of lives because, all things being equal, smaller, lighter cars are less safe than larger ones.

In fact, a 2002 National Academy of Sciences found that these fuel economy standards not only boosted the cost of cars, but may have caused as many as 2,600 more traffic fatalities just in 1993.

The article notes:

In this first term, Trump rolled the standard back a bit, only to have Joe Biden come in and impose standards specifically designed to force most cars sold to be electric. The standards would have cost automakers billions in fines for failing to meet the fuel-economy targets.

This time around, Trump is again planning to roll the CAFE standards back. But Congress did him one better. Rather than wait for regulators to rewrite the rule, which can take years and be subject be endless lobbying and litigation from various interest groups – lawmakers simply zeroed out the penalty as part of the One Big Beautiful Bill.

Now, if a car company sells cars that, on average, exceed whatever the fuel-economy limit is technically in force in a given year, they pay… nothing. The mandate is still in place, but the penalty is now $0.00. (Republicans pulled off the same trick with the dreaded Obamacare insurance mandate — zeroing out the penalty rather than trying to get the mandate repealed.)

Hopefully this will be the end of the electric Ford Mustang where they have to manufacture the engine growl electronically and the beginning of going back to the real Mustang design with the real growl!