Carmakers Fall Behind on U.S. Fuel Economy Goals

Last year’s new-car fleet in the U.S. averaged fuel economy of 32.1 mpg, or 0.7 mpg short of its regulatory goal, says the National Highway Traffic Safety Administration.

The agency predicts this year’s average will shrink to 31.8 mpg against a required 33-mpg target.

The two preliminary forecasts signal the first times the industry has failed to surpass its annual corporate average fuel economy goals since NHTSA began tracking the numbers 13 years ago. For now, carmakers can apply credits collected in previous six years—when it topped its targets by more than 1 mpg—to satisfy regulators.

NHTSA’s two-page report could change after the agency verifies its data. But industry backers say the figures buttress carmaker claims that future targets will be very difficult to meet. That’s because CAFE standards will accelerate after 2021, pushing the required average above 50 mpg eight years from now.

Manufacturers say cheap fuel and rising consumer demand for pickup trucks, SUVs and crossover vehicles are to blame for the downturn in fuel economy. They don’t see evidence that either trend will change anytime soon.

Carmakers have petitioned the Trump administration to revisit a January ruling by the Environmental Protection Agency that concluded the 2025 target for CAFE remains feasible and practical.

Environmentalists back the EPA’s conclusion, claiming the industry can meet future regulations by applying already available technologies to its larger vehicles.