Weakened federal fuel economy standards will drive up costs for American businesses and consumers

The National Highway Traffic Safety Administration’s move today to revise federal fuel economy standards will jeopardize investments in domestic auto manufacturing, disrupt efforts to onshore critical mineral and battery supply chains, and increase costs for American businesses and consumers.  

“Rolling back federal fuel economy standards will raise transportation costs for businesses and consumers, deepening the affordability crisis already felt across the country,” said Zach Friedman, senior director for federal policy, at Ceres. “Strong standards do more than save money at the pump — they are a key driver of private investment in domestic auto manufacturing, onshoring critical mineral supply chains and creating good jobs in communities across the country. They also play a vital role in reducing our reliance on Chinese imports and strengthening U.S. competitiveness in a global market where clean, efficient vehicles are of growing demand and increasingly becoming more affordable.” 

Congress first established federal fuel economy standards in 1975 to reduce the nation’s reliance on foreign oil. Since then, they have been steadily strengthened to require automakers to improve the average fuel efficiency of the vehicles they sell, reducing fuel consumption and driving down vehicle pollution over time.  

A 2021 Ceres analysis found that strong federal fuel economy standards carry critical benefits for the long-term economic health of the U.S. auto industry. According to the analysis, with strong standards in place, automakers operating in the U.S. will be more globally competitive and the industry, including suppliers, will see greater job growth. 

“Thousands of leading companies have made commitments to reduce their transportation emissions because they understand both the financial risks of climate change and the economic opportunities of a clean economy,” added Friedman. “Weakening the nation’s fuel economy standards is a losing strategy for American businesses, putting them at a competitive disadvantage with our adversaries as fuel costs increase.” 

x

About Ceres

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line. For more information, visit ceres.org.