Final Fuel-Economy Rule Sets Lower Bar
Automakers must now achieve less-ambitious average for passenger cars, light trucks.

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.
Pexels/Erik McIean
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.
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.
Originally posted on Auto Dealer Today
More Industry

Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Early Service Introductions
In this video, Josh Krach explains how early service introductions can help each department in the dealership.
Read More →
Automakers Develop Car Sanitizer
Hyundai and Kia say the particular ultraviolet light used in the technology has been demonstrated to kill the vast majority of a potentially harmful bacterium inside a vehicle.
Read More →
European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →
Used EVs Outpace New
While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
AutoNation Acquires Top Toyota Store
The automotive group added Toyota of Newnan, a high-performing dealership in Georgia, to its roster of over 300 rooftops across the U.S.
Read More →
Reynolds Names Speakers for Amplify Event
The keynoters will explore challenges that are reshaping the industry, speaking on how dealerships can adapt, innovate and thrive in a rapidly changing atmosphere.
Read More →
Mitsubishi Sets Growth Strategy, Structural Transformation
The Japanese automaker aims to 'strengthen products and technologies that embody its brand identity,' focus on its strongest markets and expand value-chain businesses 'that leverage its unique strengths.'
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →