The US has scrapped strict fuel economy rules set for 2031, cutting requirements and dropping the planned credit market. The move promises $1,300 savings per new car but raises questions for European suppliers and climate policy.
Gas stations across America are about to see a shift. The Department of Transportation has locked in a major rollback of fuel efficiency rules. The targets set under Joe Biden are gone. Automakers now have much more freedom to decide what hits the road. For 2031, the average fleet requirement drops from 50.4 to just 34.9 miles per gallon. That is the sharpest drop in CAFE (Corporate Average Fuel Economy) standards since the program began. Reuters confirmed the rule was published on September 28, 2026. This is a full reversal of Biden’s push for tougher standards.
The change is sweeping. Biden’s plan would have forced carmakers to reach 4.7 liters per 100 kilometers by 2031. Now, the new bar is 6.7 liters. The credit market, which would have let electric vehicle makers sell extra compliance to others starting in 2028, is scrapped. The Department of Transportation says the new rules will save buyers $1,300 per new car. The focus has shifted. It’s now about cost, not climate. The New York Times reports the 2031 target is about 34.5 mpg, far below the old 50.4 mpg goal.
Preliminary government analysis estimated that while the new rules could lower the average price of a new car by about $930, they would also result in tens of billions more gallons of gasoline being consumed by 2050.
Transportation Secretary Sean Duffy did not mince words. "While Joe Biden and Pete Buttigieg pushed a green agenda that made our roads less safe and raised costs for working Americans, this administration is delivering relief for families." The message is blunt. Climate goals are out. Affordability and market freedom are in. CNBC and Reuters both note Duffy’s argument: the old rules made cars pricier for buyers. The rollback is meant to fix that.
Environmental groups are pushing back. Katherine Garcia from the Sierra Club’s clean transportation program said, "Less efficient cars mean more gasoline burned, higher costs at the pump, and dirtier air in our communities." The debate is heating up. Gas and diesel prices are at record highs. The US midterm elections are just weeks away. Reuters reports that green groups warn weaker standards will mean more emissions and higher fuel bills for families.
For carmakers, this is a big shift. Efficiency is now a business choice, not a federal rule. The Department expects the mix of new registrations to swing. It could go from 70% light trucks to 70% passenger cars, depending on what sells. The rules have swung back and forth for decades. Reagan relaxed them in the 1980s. Obama doubled them in 2012. Trump reversed course in 2020. Biden brought the targets back. Now, the cycle turns again.
The White House has framed the rollback as a rejection of an 'EV mandate,' though Reuters and Al Jazeera clarify that this is more a political talking point than a precise legal description, since the final text did not explicitly require electric vehicle quotas.
Spain’s car industry is watching from afar. Factories in Martorell, Zaragoza, Vigo, and Palencia build for Europe, not the US. The 2025 tariff deal between Brussels and Washington already blocks most European cars from the US market. The direct hit to Spanish exports is small. But the indirect effects are harder to ignore.
The real squeeze is on Spanish parts suppliers like Gestamp, CIE Automotive, and Grupo Antolín. They run plants in the US and Mexico. The rules once favored electric and efficient cars. Now, big combustion engines are back in favor. These companies must rethink orders and investments. Volkswagen and Stellantis in Spain are watching US and EU rules drift apart.
Brussels is sticking to strict CO2 targets. The 2035 goal is still under review. Intermediate steps are not set. The US reversal leaves the European Commission without its old argument that America is moving the same way. The next big fight will be in Europe, not Washington. Spain’s future is tied to Germany’s. Both risk losing investment to the US if Europe stays strict.
CAFE standards started in 1975 after the oil embargo. Every US administration since has changed them. This latest move is not about climate. It’s about car prices and the politics of voters who buy used cars, pay for gas, and work in auto plants. Fuel prices are high. Elections are near. The trade-off is clear: short-term savings over long-term climate goals. That’s the pitch.
As reported earlier, the global car market is already shifting. Brands are reworking plans for both combustion and electric models. The US decision will speed up this split. European regulators and carmakers now face a market where the rules—and the incentives—no longer match.
This rollback marks a sharp turn in US car policy. Short-term affordability now beats environmental ambition. For Spain and Europe, the message is blunt. The regulatory consensus is broken. Brussels must decide if Europe can keep investment or watch it flow to a more lenient America. The stakes are high for industry, climate, and consumers.
