US cuts fuel economy rules to 34.9 mpg for Ford and rivals

The Trump administration finalized new fuel economy standards on Monday, September 28, 2026. The rules set an expected average fleet fuel economy of 34.9 miles per gallon by model year 2031. This target is well below the 50.4 mpg path established under the Biden administration.

The administration also reversed the earlier target of having electric vehicles account for 50% of new U.S. vehicle sales by 2030. The change gives Ford and General Motors more flexibility to balance electric vehicle investments with gasoline-powered models and hybrids.

The Transportation Department estimates the revision will reduce the average price of a new vehicle by $1,300 and save U.S. consumers $138 billion over five years. Earlier NHTSA projections estimated that the trade-off would be an additional 100 billion gallons of fuel consumed through 2050, alongside a 5% increase in carbon dioxide emissions.

Ford shares fell 2.7% on Monday amid broader market weakness. General Motors dropped about 2%, and Tesla declined more than 3%.