E2: Less fuel-efficient cars on the road means higher costs at the pump for consumers and small businesses
WASHINGTON – Today, the National Highway Traffic Safety Administration on behalf of the US Department of Transportation finalized a rollback of federal fuel economy standards. The National Highway Traffic Safety Administration’s new proposal sets a standard that car manufacturers must average 34.5 mpg for passenger and light trucks across their fleets by model year 2031. This is a reversal of the previous mandate of the 50.4 mpg standard put into effect in 2022.
Following is a statement from BOB KEEFE, Executive Director of E2
“Soaring fuel costs are already squeezing businesses and consumers. This regulation only makes America’s affordability crisis worse.”
“With lower standards, automakers are incentivized to maintain the status quo. Keeping more gas guzzlers on the road instead of encouraging automakers to make more efficient vehicles means more demand for gas and diesel, higher prices and more pain at the pump.”
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E2 is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and managed more than $100 billion in venture and private equity capital. For more information, see www.e2.org or follow us on X/Twitter at @e2org and Bluesky at @e2.org.