Auto Innovation Alliance Backs Trump Administration's Move to Ease Vehicle Fuel Economy Standards, Opposes Lawsuits by California and Other States

On November 4, an industry organization representing automakers including General Motors, Toyota, Volkswagen, Hyundai, Ford and Stellantis publicly backed the Trump administration's decision to relax vehicle fuel economy standards in legal proceedings, opposing a lawsuit filed by California and more than 20 other states. Last month, the U.S. Department of Transportation said it was establishing a new fleet average fuel economy standard requiring 34.9 miles per gallon (about 14.7 km/liter) by 2031, lower than the 50.4 miles per gallon (about 21.4 km/liter) approved by the Biden administration in 2024. California, New York and more than 20 other states, cities and counties subsequently sued the Trump administration, and a coalition of environmental and consumer organizations filed a separate lawsuit challenging the new rule. In a filing with the U.S. Court of Appeals for the First Circuit, the Alliance for Automotive Innovation said that if the standards are stayed, it would affect automakers' business and jeopardize capital investment planning, product development and performance validation for hundreds of new models intended for the U.S. market. The suing states argued that the Trump administration ignored the existence of millions of electric vehicles, resulting in a flawed analysis of the maximum feasible fuel economy level. The U.S. Department of Transportation said the new rule would reduce manufacturers' compliance cost per vehicle by $1,289, while increasing fuel expenses by more than $1,600 over the vehicle's lifetime. The department estimated that, compared with the Biden-era rule, the new rule would increase U.S. gasoline consumption by 4.6% by 2050, or about 121 billion gallons. The American Petroleum Institute also expressed support for the Trump administration's rule. The case is still being heard.