New Biden CAFE Standards May Be an Existential Threat to US Automakers

New Biden CAFE Standards May Be an Existential Threat to US Automakers
Ford CEO Jim Farley (left), Ford Executive Chairman Bill Ford (center), and Michigan Gov. Gretchen Whitmer take to the state for a photo after announcing at a press conference that Ford will be partnering with the worlds largest battery company, a China-based company called Contemporary Amperex Technology, to create an electric-vehicle battery plant in Marshall, Mich., on Feb. 13, 2023. Bill Pugliano/Getty Images
J.G. Collins
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Earlier this month, the Biden administration issued revised Corporate Average Fuel Economy (CAFE) standards that dictate fuel mileage standards for passenger cars and light trucks in the United States. The new CAFE standards require 49 miles per gallon (mpg) on U.S. vehicles by model year 2026.
In making the announcement, U.S. Transportation Secretary Pete Buttigieg said, “Today’s rule means that American families will be able to drive farther before they have to fill up, saving hundreds of dollars per year ... These improvements will also make our country less vulnerable to global shifts in the price of oil, and protect communities by reducing carbon emissions by 2.5 billion metric tons.”
J.G. Collins
J.G. Collins
Author
J.G. Collins is managing director of the Stuyvesant Square Consultancy, a strategic advisory, market survey, and consulting firm in New York. His writings on economics, trade, politics, and public policy have appeared in Forbes, the New York Post, Crain’s New York Business, The Hill, The American Conservative, and other publications.
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