Trump Abandons Fuel Efficiency Plan

Nov. 5, 2019

This decision could leave General Motors, Toyota, and Fiat Chrysler staggered.

November 5, 2019—The White House is abandoning its plan to freeze fuel efficiency standards of cars at 2020 with the Trump administration now considering a 1.5 percent annual increase instead, reports The Verge.

This decision could leave companies like General Motors, Toyota, and Fiat Chrysler at a standstill as the companies originally sided with President Trump over whether California could set its own fuel economy standards.

Under Obama, the car companies were going to have to nearly double the fuel efficiency of its vehicles to an average of 54 miles per gallon by 2025. The companies argued this would make the cars too expensive, which prompted Trump to propose a new plan to freeze the standards at an average 37 miles per gallon.

California decided to go ahead and commit to the Obama-era plan, striking a deal with Ford, VW, Honda, and BMW to increase fuel efficiency of their vehicles and reduce emissions by about 3.7 percent through 2026.

The Trump Administration has since shifted its original plan to likely involved a 1.5 increase in fuel efficiency this year. If the plan moves forward, the administration could face legal challenges from California and other states who are wanting stricter standards.