The White House announced a reset of the Corporate Average Fuel Economy standards on Wednesday. The development was highly anticipated by the automobile industry and has already been part of the widespread model and production changes that have been announced during 2025.
In essence, the Trump Administration rolls back the fuel economy targets that the Biden administration set, which were viewed as effectively mandating electric vehicles by setting tough targets for gasoline and diesel vehicles. The reset returns standards to levels achievable with conventional gasoline and diesel vehicles.
The White House forecasts the actions will save American families $109 billion in total over the next five years and lower the rate of serious injuries. Separately, the push for autonomous vehicles in the U.S. is also based on the expectations for lower transportation costs and increased safety.
General Motors (GM) and Ford Motor (F) showed a modest gain of less than 2% in late afternoon trading, while Stellantis (STLA) was up about 4.0%.