President Donald Trump has trashed federal standards from the Biden administration that he and the automakers say have driven up the price of new vehicles. [some emphasis, links added]
He said the new Corporate Average Fuel Economy (CAFE) change should save consumers about $1,000 on the price of a new vehicle.
The change aims to bolster domestic auto manufacturing in the Rust Belt after years of losing auto jobs to overseas plants.
Automakers have promised to invest billions of dollars in new auto manufacturing plants nationwide.
Big Three Automaker Stellantis, which owns Jeep, Chrysler, and Ram, has said it will invest $13 billion in Midwest auto factories in Indiana, Ohio, and Michigan.
Ford says it will invest $5 billion in Kentucky and Michigan factories.
Former President Joe Biden enacted the auto mileage standards to encourage consumers to buy electric vehicles.
Ford CEO Jim Farley welcomed the change.
The change follows Trump’s aim to make life more affordable for Americans.
Read more at Townhall
Auto prices will not go down $1000.
The new rules prevent a price increase that would have occurred to pay for the advanced technology needed to meet the previous, higher mileage targets (around 50 MPG by 2031). $1000 is a wild guess.
I doubt if the automakers were going to meet that 50 mile per gallon standard. Because EVs are not selling well. The most recently reported average fuel economy for new light-duty vehicles in 2024 is approximately 28 miles per gallon (mpg). The automakers would have been forced to pay the CAFE penalties in the future..
The potential $1000 savings refer only to the initial sticker price, while the previous 50mpg standard would have saved consumers thousands of dollars in fuel costs over the lifetime of the vehicle due to better fuel efficiency.
Approximately half of the vehicles sold in the United States are assembled in the U.S.. Every time there is a new model, there is a large investment for engineering, testing and manufacturing. The article falsely implies that these investments are something new, giving credit to Trump.
some U.S. automakers are investing in and expanding existing plants, and one is reopening a plant in the next year or two, though major new plant construction is less common due to long planning cycles. Stellantis is reopening the Belvidere Assembly Plant in Illinois for production starting in 2027. General Motors is investing to increase production and retool its Orion Assembly plant in Michigan for gas and electric vehicles, with increased output starting in early 2027. Ford is investing in its Kentucky and Michigan facilities to build new electric vehicles and their batteries.
Direct employment by major automakers:
Around 388,000 U.S. workers are directly employed by major automakers competing in the U.S.. In 2014, approximately 300,000 U.S. workers were directly employed by the 16 major automakers competing in the U.S. market. Of that total, over 200,000 were employed by the “Detroit Three” (Chrysler, Ford, and General Motors). The rising trend started long before Trump became president in 2025.
This article is inaccurate Trump cheerleading based on wishful thinking.
The Biden 50 mile per gallon CAFE was ridiculous.
But the July 4, 2025 “big beautiful bill” eliminated CAFE penalties.
For the past five months, it didn’t matter what the CAFE requirements were. The Trump administration’s proposed standard would require an average of approximately 34.5 miles per gallon (mpg) by model year 2031, a significant reduction from the Biden-era target of approximately 50.4 mpg for the same year. No financial penalties are allowed, so there really is no CAFE standard since July 4, 2025.
I worked in US auto industry product development for 27 years.