The Trump administration is reportedly preparing to roll back fuel efficiency standards implemented under the Biden administration, citing concerns about rising new car prices. Sources familiar with the matter indicate that executives from Detroit’s major car manufacturers, including Stellantis NV chief executive Antonio Filosa, are scheduled to attend a White House announcement on Wednesday, where the proposed changes to fuel economy standards will be unveiled. Details of the plan remain unclear, but the new standards are expected to be less strict than those previously finalised under former President Joe Biden.
The White House has declined to comment on the impending announcement, and the Transportation Department has not yet responded to requests for information. The move aligns with President Donald Trump’s ongoing efforts to dismantle policies he has criticised as an ‘EV mandate.’ The Trump administration has argued that current fuel economy requirements have artificially inflated the cost of new vehicles, pushing them beyond the reach of many Americans. The average price of a new car surpassed $US50,000 for the first time in September.
Rising car prices also reflect a strategic shift among domestic automakers, who are increasingly focusing on higher-end models with more features, which yield greater profits. This shift has come at the expense of lower-margin, entry-level vehicles. As automakers reduce their production of plug-in models, consumers are left with fewer fuel-efficient and affordable options. Stellantis NV is a multinational automotive manufacturing corporation known for brands such as Chrysler, Jeep, Dodge, Fiat, and Alfa Romeo. The company designs, engineers, manufactures, distributes and sells automobiles and light commercial vehicles.
