Summary
President Donald Trump announced plans to lower fuel efficiency standards for cars, which he claims will make cars more affordable. Experts argue the changes might not save drivers money and could negatively impact the electric vehicle market in the U.S.
Key Facts
- President Trump announced a plan to lower car fuel efficiency standards to 34.5 miles per gallon.
- The previous standard, set by President Biden, was 50.4 miles per gallon.
- Trump believes lowering standards could cut the cost of new cars by up to $1,000 each.
- U.S. car manufacturers have already invested in meeting the old fuel efficiency standards.
- Ford Motors expects a $19.5 billion impact due to reduced electric vehicle plans.
- General Motors announced a $1.6 billion impact and laid off 3,400 employees at its EV sites.
- Electric vehicles (EVs) make up less than 10% of the U.S. car market, below the global average of 25%.
- The Trump administration has reduced grants for EV charging stations, drawing lawsuits from 16 states.
