New fuel economy targets
Tougher fuel economy standards being introduced in the United States mean new vehicles sold in 2026 will have to average 40 miles per gallon of petrol (5.9 litres per 100km) in 2026, a shift from the current 28mpg (8.4L/km).
The National Highway Traffic Safety Administration (NHTSA) says the target is the strongest to date and the maximum the industry can achieve over the time period.
The new federal rules undo a rollback of standards that was enacted under President Donald Trump. The NHTSA claims the change will reduce fuel consumption by more than 220 billion gallons, or a trillion litres, over the life of vehicles compared with the Trump standards.
Under the regulations, mileage for new vehicles will increase by 8 per cent per year for model years 2024 and 2025 and 10 per cent in the 2026 model year, reports the Associated Press.
Dealers fear the more stringent requirements will increase prices and push people out of the new-car market. NHTSA projects the adjustments will raise the price of a new vehicle in the 2029 model year by US$1,087, or about NZ$1,500.
Carmakers are investing billions of dollars to develop and build electric vehicles but say government support is needed to get people to buy them and suggest government tax credits to reduce prices as well as more money for charging stations.
