Inside Politics: Fuel Economy Update

As you may have seen earlier this week, the Department of Transportation (DOT) along with the Environment Protection Agency (EPA) released their final federal fuel economy rule, also referred to as the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule. It included modest year-over-year increases of 1.5 percent for both cars and trucks from 2021 through 2026, which was below the planned 5 percent increases implemented by the previous administration. Additionally, under the new rule, the administration said that 2026 model-year vehicles will average around 40 miles per gallon as opposed to 47 miles per gallon under the prior regulation.

At Ford, we believe making great vehicles, protecting the planet and maintaining a strong business are not mutually exclusive. That is why we remain committed to achieving greenhouse gas emissions consistent with California’s voluntary framework, which is expected to be finalized later this spring. These commitments will provide greater regulatory stability and reduce CO2 released into the atmosphere better than by complying with two separate greenhouse gas (GHG) standards. In our view, this path forward best protects the interests of customers, including affordability of vehicles; the environment; and the short- and long-term health of the industry. 

These efforts support our more than $11 billion investment to expand our electrified vehicle portfolio by 2022.  We will continue to keep you posted as we work with California to formalize and implement the terms of our framework in the coming months.

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