President Donald Trump has signaled he will revisit fuel efficiency standards for cars and trucks at the American Center for Mobility today.
Known as the Cafe Standards, the miles per gallon (mpg) rates were set by the Obama administration despite pleas from auto manufacturers who said the standards would significantly raise vehicle prices and cost jobs.
President Obama used the Corporate Average Fuel Economy (CAFE) emission targets as part of his strategy to combat Climate Change.
Prefacing the new standards with that in mind, the EPA published guidelines for cars and trucks that required a fleet-wide average of 54.5 mph by 2025.
Vehicle costs have steadily fallen since the 1990s, but the price of a new car has increased $6,200 since 2009 over the previous trend.
Chief executives from 20 auto companies sent President Trump a letter stating the new standards will put thousands or as many as a million jobs at risk.
While in Detroit, Trump also discussed his plans to roll back federal red tape and other plans for creating more American jobs.
The current administration calls the CAFE standards part of Obama’s “burdensome regulations” that need to be somewhere between 27.5 and 54.5 mpg and allow market forces to determine what consumers want to buy.