September 17, 2018 in CAFE Standards

CAFE Standards Continue to Fluctuate

CAFE Standards

Since the initial establishment of CAFE standards in the 1970s, periodic changes have been instituted to accommodate for growth, industry changes, and new information. As with most changes, each announcement has been met with a wide variety of reactions, from sharp criticism to fawning praise. The government’s most recent announcement has been no exception to this.

Recent Announcement

The Trump Administration recently announced plans to dial back CAFE goals instituted under President Obama.

The proposal from the current administration would freeze the average fuel economy after 2021 at about 37 miles per gallon; the Obama-era rule would have required automakers to hit an average of about 54 miles per gallon by 2025. The Trump plan would also revoke a waiver that the federal government granted to California, which allows the state to set stricter standards because of its particular air pollution problems. (New York Times)

Under this proposed plan, since fuel efficiency requirements will not be getting progressively tougher, automakers would theoretically save on research and development.

CAFE Standards

Conflicting Opinions

While some have rejoiced that automakers will save money on research and development under the proposed plan, others point out that less research and development will lead to fewer opportunities for technology jobs, effectively leading to declines in labor needs.

Additionally, while there are those rejoicing over the expectation that lighter CAFE standards will lower consumer vehicle costs, there are others who note that these savings come at a cost: less fuel efficiency and higher greenhouse gas emissions are at the top of such lists.

CAFE Standards: We Can Help 

No matter where you stand in the debate regarding the most recent proposal to adjust CAFE standards, we here at American Hydroformers remain committed to serving you along the way. If you have questions about our premium services, or if you would like to chat about anything else, please feel free to contact us at any time.

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