The federal electric vehicle tax credit wasn’t the only policy behind America’s record EV sales over the past few years. The Corporate Average Fuel Economy (CAFE) rules also played a key role in pushing automakers to manufacture more fuel-efficient cars that helped reduce your fuel bills and moved the U.S. deeper into electrification.
But the Trump administration is now expected to announce a heavily revised CAFE framework on Wednesday as it continues to roll back the Biden-era clean energy programs that it deems as the “green new scam.” An event will be held at the White House with automaker execs on hand to celebrate.
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Also on the docket today: Car sales in November were a mixed bag. Some automakers witnessed meaningful gains with hybrids, but demand for EVs declined as the months of September and October snatched sales away from November. Plus, Tesla’s Full-Self Driving (FSD) software has arrived in South Korea—but not everyone in the country is thrilled about it.
30%: Trump Seeks Softer Fuel Economy Rules To Curb Vehicle Costs
Photo by: InsideEVs
There’s ample evidence proving that fuel economy rules and emissions standards simply work, period. The Environmental Protection Agency said last year that EVs and plug-in hybrids aren’t just cutting new-vehicle emissions nationwide, they’re also pushing average fleet fuel economy to record highs. For you and I, that means cleaner air, fewer stops at the gas station and a little more remaining in our wallets.
Some of that credit goes to the Corporate Average Fuel Economy (CAFE) rules, which the National Highway Traffic Safety Administration (NHTSA) is responsible for setting and enforcing. The Trump administration now wants to ease these rules, which would reduce the pressure on automakers to sell more EVs, instead relying more on polluting internal combustion engines.
Here’s what Bloomberg reported, citing people familiar with the matter:
The Trump administration is poised to announce new fuel efficiency standards for automobiles in a bid to undo requirements it has assailed for driving up the cost of new cars, according to people familiar with the matter.
The NHTSA has long enforced the CAFE standards that require automakers to hit minimum average fuel-efficiency targets across their fleets.
The latest update to the CAFE standards was issued in 2024 by the Biden administration, requiring automakers to achieve an average fleet fuel economy of over 50 miles per gallon by 2031. Since that goal was so hard to meet, it was effectively driving a mostly electric new car market by the 2030s—EVs don’t have to worry about fuel economy.
The fees for non-compliance can reach hundreds of millions of dollars, but the Trump administration brought them down to $0 when Congress passed the president’s signature One Big Beautiful Bill early this year. Now, what the revised rules will look like is something we’ll find out soon.
The outlet continued:
The chief executive officer of Jeep-maker Stellantis NV and senior executives from General Motors Co. and Ford Motor Co. plan to attend the announcement at the White House, which is expected on Wednesday, said the people, who asked not to be identified discussing details that are not yet public.
The Trump administration, under intense public pressure to reduce the cost of goods and living in America, claims MPG-boosting technology and new engine requirements (to say nothing of EVs) have made new cars too expensive. But there’s no guarantee automakers will pass these savings on to buyers. The bruising tariffs and capital-intensive electrification efforts are already squeezing their margins. Unless the revised CAFE rules are radically different—or the tariff war finally cools—don’t expect sticker prices to magically start looking friendlier.
60%: Hybrids Sales Continued To Grow In November As EVs Dipped
2026 Subaru Crosstrek Hybrid
Photo by: Patrick George
As the year draws to a close, hybrid sales continue to grow robustly in the U.S., helping offset the cooldown in sales of fully electric models after the expiry of the $7,500 federal tax credit at the end of September.
Hyundai’s hybrids surged 42% year-over-year in November, posting its best-ever sales month thanks to models such as the Sonata HEV and Elantra HEV. Meanwhile, the Ioniq 5 and Ioniq 6 both dropped by over 50% to 2,027 and 489 units after a strong third quarter.
Kia’s electrified sales, which include hybrids, plug-in hybrids, and EVs, increased 25% but the EV9 fell 57% to just 918 units, while the EV6 dropped 68% to 603 units.
2026 Kia EV9
Photo by: Suvrat Kothari
Ford’s electrified lineup also witnessed mixed results, with EV sales plunging 61% to 4,247, Automotive News reported. The F-150 Lightning fell 72%—The Wall Street Journal reported last month that the company was considering cancelling the electric truck, but no final decision had been made. The Mustang Mach-E slid 49% whereas sales of the F-150, Escape and Maverick hybrids increased a solid 14% to 16,301 units.
It’s worth remembering that this EV slowdown is largely an anomaly. The third quarter poached demand from the fourth quarter as buyers rushed to grab the dying tax credit in September. Analysts still expect sales to bounce back and settle into a more normal rhythm next year, especially with a whole wave of cheaper models headed for showroom floors.
90%: Tesla’s Full-Self Driving Launches In Korea, But Safety Concerns Linger
Photo by: Tesla
Tesla has launched its Full Self-Driving (FSD) advanced driver assistance system in South Korea, but experts there have warned that drivers may not use it responsibly.
FSD is a Level 2 system that can accelerate, steer and brake by itself using cameras all around the vehicle to “see” the environment and then make active decisions based on that. But drivers need to monitor at all times and be ready to take over when the car does something that it’s not supposed to, which is pretty common with FSD.
The Korea Times explains why that’s concerning:
“Simply put, the Level 2 autonomous driving is just an advanced assistance system, so drivers should not depend excessively on it,” said Kim Pil-soo, a professor of automotive technology at Daelim University College.
“The biggest problem is that customers put way too much trust in the system, particularly in Tesla’s FSD due to its global popularity,” he said.
Like the U.S., Korea lacks a national framework to regulate autonomous vehicles. But experts are now urging the government to put in place the oversight needed to ensure that systems like FSD aren’t misused and that autonomous vehicles are deployed in the safest possible manner.
100%: Will Reducing Fuel Economy Standards Save You Money?
2022 Hyundai Elantra N Exterior Tailpipes
Studies have shown that Americans overwhelmingly support stricter fuel economy rules. They simply want to lower their gas expenses and drive vehicles that are more efficient, requiring fewer stops to the gas station. And selling more EVs is the most straightforward method for automakers to comply.
Do you also echo this sentiment? Would you want the next car you buy to be more efficient and less thirsty than the one you own now? And should the administration support policy which favors that? Leave your thoughts in the comments.
Have a tip? Contact the author: suvrat.kothari@insideevs.com
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