U.S.: new fuel economy standards for MY 2027-2031

On June 7, 2024, the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) issued new Corporate Average Fuel Economy (CAFE) standards for model years (MY) 2027-2031. These standards, set by the NHTSA in conjunction with the U.S. Environmental Protection Agency (EPA), aim to improve the average fuel economy (measured in miles per gallon) of vehicles sold in the U.S.

Automakers, with the flexibility of the CAFE standards, can ensure the average fuel economy of their fleet meets or exceeds the government's targets. They can achieve this through a variety of methods, including advanced vehicle technologies, promoting fuel-efficient models and balancing the mix of vehicles sold. CAFE standards are designed