How President Trump's federal fuel economy plan will impact the auto industry
The impact of fuel economy changes in Michigan
The regulatory changes are intended to relax standards on gas-powered cars and trucks, reversing policies implemented under former President Joe Biden that promoted electric vehicles and stricter mileage regulations.
SOUTHFIELD, Mich. (FOX 2) - On Wednesday, President Donald Trump announced a federal plan aimed at weakening vehicle mileage rules in the auto industry, causing significant reactions among the Big Three automakers.
Big picture view:
The regulatory changes are intended to relax standards on gas-powered cars and trucks, reversing policies implemented under former President Joe Biden that promoted electric vehicles and stricter mileage regulations.
Trump stated that the effort is designed to protect auto jobs and help consumers with lower prices, benefiting families. He claimed that under Biden, auto industry prices increased by 25%, including an 18% rise in one year.
FOX 2 sought to understand what this rollback means for car buyers.
Firstly, this doesn't mean a return to the old fuel economy standards of roughly 39 miles per gallon of gas. The standards will still increase, but at a much slower rate of one percent per year. FOX 2 spoke with WWJ automotive reporter Jeff Gilbert to discuss whether this is a win for the auto industry.
The full interview can be watched in the video player above.
Gilbert emphasized the importance of customers making their own choices on whether to buy electric, hybrid, or gas-powered vehicles.
Dig deeper:
Transportation Secretary Sean Duffy said at the White House during the announcement that the previous CAFE standards were set using EV and hybrid models for a 62-mile-per-gallon standard, which caused the cost to rise.
"The way that Democrats talk about affordability is a lie. Today is a perfect example of that," Duffy claimed. "So, these (Corporate Average Fuel Economy) standards, used what was contrary to the law. They spent a lot of money on technology and trying to meet the unattainable standard, driving up the cost of a car.
"And then number two, if they couldn't meet the unattainable standard, they had to trade for carbon costing billions of dollars.
"The more cars we sell, the more jobs we have in this company."
Trump said the average price reduction is expected to drop $1,000 but added it will possibly be more than that.
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Trump auto industry plan announced scuttling Biden era mileage, emissions standards
President Donald Trump announced a federal plan calling to weaken vehicle mileage rules in the auto industry - causing reverberations among Big Three auto makers.