Automakers Have Been Given the Green Light to Overrun Roads with Large Fuel-Consuming Vehicles | Carscoops

      Executives are set to ramp up oil and gas production now that EPA penalties have been lifted.

      With CAFE penalties eliminated, there is a clear opportunity for the production of more fuel-inefficient SUVs and trucks.

      The Big Three automakers seem to be shifting back towards internal combustion engines, highlighting significant profit opportunities.

      The landscape of the automotive industry is constantly evolving, but the developments in 2025 have reached new heights. Changes brought about by the Trump administration’s policies, including fluctuations in tariffs and the easing of regulatory barriers, are rapidly altering the market. A notable consequence is the renewed potential for large SUVs and trucks, which has delighted automakers.

      Specifically, the CEOs of America's 'Big Three' manufacturers are enthusiastic about the emerging situation. The Trump administration’s EPA has eliminated penalties for failing to meet CAFE standards, which will save car manufacturers billions annually.

      Without penalties for producing fuel-hungry trucks and SUVs, these companies can increasingly capitalize on these high-profit segments.

      Further insights reveal that Stellantis CEO Antonio Filosa mentioned, “This will bring us a significant amount of additional profit.” GM CEO Mary Barra remarked during an earnings call, “It also provides us with the chance to sell ICE vehicles … for a longer time and enjoy the profits from those vehicles.”

      Ford’s Jim Farley echoed this sentiment, stating, “This presents a multibillion-dollar opportunity over the coming years.”

      As profit concerns take precedence, EV momentum is slowing

      These three manufacturers have heavily invested in electric vehicle development, CAFE penalties, and various technologies to diversify into more sustainable offerings. GM had pledged years ago to transition to an all-EV brand by 2035. Ford was set to produce a three-row electric SUV in Canada, while Stellantis controversially discontinued the HEMI and launched the latest Charger generation exclusively with electric power.

      However, it has proven extremely challenging for them to establish a strong foothold in the EV market, prompting a return to the profitability associated with internal combustion engine vehicles. Stellantis is expected to reveal new details about the gas-powered Dodge Charger with the Sixpack shortly.

      Ford will now focus on building larger trucks in Canada instead of the planned three-row electric SUV, and GM has not mentioned its all-EV by 2035 initiative in quite a while.

      The shift to trucks, SUVs, and a new business strategy

      From a business perspective, this pivot makes logical sense as American consumers continue to purchase large vehicles in substantial quantities.

      “Americans do prefer large vehicles,” remarked Adam Lee, chairman of Maine-based Lee Auto Malls. “They are likely to see how many more large SUVs they can produce, as these vehicles sell well and yield significant profits.” He expressed concern that without sustained investment in EVs, the U.S. may lag behind in sustainability and technology.

      Currently, there is no indication that automakers will abandon their EV initiatives, but their focus may be shifting for at least the next few years. It is easy to envision an increase in the number of large vehicles on the roads than there are today.