Mar 13, 2017

Trump Administration to review Obama-era auto fuel standards

Melissa Phillip/Houston Chronicle

Detroit automakers will soon be introduced to the Trump Administration's business-friendly side, when it announces it will reconsider tough fuel-efficiency standards reaffirmed in the waning days of the Obama Administration.

Reuters reports that the Administration will travel to Ypsilanti, Michigan to tout a review of fuel efficiency standards that would have required car companies products to raise the average fuel efficiency of their products to more than 52 miles per gallon in 2020.

Why it matters: Car companies agreed in 2012 to meet such ambitious targets, but that was in a much different political climate and when oil prices were much higher than today. Cheap gas raises demand for more profitable but less efficient trucks and SUVs, and a regulation-skeptical White House raises the potential reward for industry to fight back against higher fuel standards.

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