Federal regulators officially unveiled the Corporate Average Fuel Economy (CAFE) proposal for the 2017-'25 period on November 16, after months of behind-the-scenes rule-making. It's a complex bundle of regulations that would have profound effects on car buyers across the nation.
There are no big consumer surprises in the proposed new 2025 CAFE standards. As already announced, the government wants automakers to build more efficient passenger vehicles that average the equivalent of 54.5 mpg, and get it done by 2025. The proposal estimates that the technologies needed to achieve that standard will add $2,000 to a 2025 model-year vehicle. It also estimates that fuel cost savings will more than offset that additional expense over the life of the vehicle.
The provisions of the nearly 900-page "Notice of Proposed Rule-Making" also would have broad repercussions for highway safety and the costs of buying, insuring and operating a new car or truck. The rules also could affect the cost of fuel and even the vehicles that are available on new-car dealers' lots.