US tells automakers they face no fuel economy penalties for last three years

Reuters

2025/07/17

WASHINGTON, July 16 (Reuters) - Automakers face no fines for failures to meet Corporate Average Fuel Economy rules dating back to the 2022 model year under a law signed by President Donald Trump this month, U.S. regulators said.

The tax and budget bill approved by Trump ends penalties for not meeting fuel efficiency rules under a 1975 energy law. The National Highway Traffic Safety Administration said in a letter to automakers seen by Reuters it is working on its reconsideration of fuel economy rules. The decision will make it easier for automakers to build gas-powered vehicles.

(Reporting by David Shepardson, Editing by Franklin Paul)

((David.Shepardson@thomsonreuters.com; 2028988324;))

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