Trump's Strategy for Affordable Cars Could Ultimately Increase Costs for Drivers | Carscoops

      The White House claims that more lenient efficiency standards will lower vehicle prices, but analysts caution that increased fuel expenses could eliminate these savings more quickly than one can refill a tank.

      The Trump administration intends to reduce fuel economy targets to 34.5 mpg by 2031.

      Automakers stand to save $35 billion, potentially lowering new car costs by approximately $930.

      Experts warn that escalating fuel costs due to less efficient vehicles will swiftly negate these savings.

      President Trump aims to make cars more affordable once again. His latest initiative seeks to unwind the stringent fuel economy regulations set by the Biden administration, promoting the idea that reduced regulation will lead to less expensive cars and more satisfied American drivers.

      However, as with most predictions regarding prices and politics, the reality is not that straightforward.

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      Under the proposal from the National Highway Traffic Safety Administration and the EPA, the average fuel economy requirement would decrease to 34.5 mpg by 2031, significantly lower than the 50.4 mpg target established by the prior administration.

      Car manufacturers are understandably supportive of this proposal. According to a government analysis, relaxed standards could save manufacturers approximately $35 billion by 2031 and reduce the average cost of a new car by around $930, assuming these savings are passed on to consumers.

      However, it's crucial to consider the finer details.

      The administration emphasizes the potential for cheaper vehicles and the prospect of revitalizing local industry for job growth.

      Nevertheless, the same analysis from the NHTSA reveals a less favorable figure buried in the details. The relaxed standards would lead to an increase in fuel consumption by roughly 100 billion gallons by 2050, costing Americans up to $185 billion. Suddenly, the arithmetic appears less appealing.

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      Experts assert that any initial savings would quickly evaporate as drivers fill their tanks more frequently.

      "From the very first day of driving, it will cost consumers more to operate their less-efficient cars: higher fuel costs, more repairs, and increased time spent at the pump," stated Jason Schwartz from New York University in an interview with Reuters.

      For buyers financing vehicles over several years, the $930 savings gets diluted while fuel costs accumulate weekly.

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      The White House is defending its position. Officials argue that the estimate overly emphasizes long-term fuel prices, which they consider speculative. They also assert that automakers will save money by avoiding MPG fines, which are not included in the calculations. Additionally, there’s a nostalgic appeal to this move.

      More lenient regulations could enable manufacturers to produce less efficient vehicles again, including classic wagons and large, fuel-thirsty six- and eight-cylinder cars that would struggle under stricter standards.

      Ford, GM, and Stellantis are expected to gain the most from the rollback, which is not surprising given their heavy focus on trucks and large SUVs.

      The administration also portrays this shift as a counter to an unofficial EV mandate, arguing that electric vehicles continue to be expensive and challenging to manufacture profitably at scale.

      Whether this actually benefits everyday drivers remains to be seen. While lower sticker prices may seem appealing, if it results in years of higher fuel costs, many buyers might find that the savings disappear long before the new car scent does.