Ford CEO Praises White House Change to Vehicle Fuel Economy Standards
The CEO of Ford Motor Co. is praising U.S. President Donald Trump for his plans to make automobiles more affordable to everyday consumers. Here is what Jim Farley is saying about the new initiatives unveiled on Wednesday by the Trump administration, designed to roll back some of the more stringent requirements for fuel-powered vehicles.
Ford CEO Lauds Rollback of EV Standards
A new rule change regarding electric vehicles (EVs) and fuel efficiency standards by the White House to make cars more affordable for American consumers is receiving praise from Ford CEO Jim Farley. Farley appeared on "Fox & Friends" on Thursday morning to hail the plan, telling the media that this is a "victory for affordability and common sense." Farley went on to say that the automaker will be able to offer more affordable options on its most popular models due to the rule change.
Farley appeared on the news program less than one day after he accompanied President Trump for an announcement in the Oval Office. The White House said that it was resetting the federal fuel-economy standards that had been put in place by the Biden administration. According to the White House, the move will save $109 billion for American families.
Farley said that the rollback of the regulations is a "victory" for consumers and common sense, noting that drivers will now get to choose the vehicle that they want rather than being forced into EVs. The CEO of the largest automobile manufacturer in the U.S. also praised Trump's leadership for "aligning economic standards with market realities."
Prior to the formal announcement by the White House, Farley said that the country can make progress on lower carbon emissions and increasing energy efficiency while still providing customers with choice and affordability. He also noted that the company is "not going back to gas-guzzlers" due to the wide array of options now available, ranging from EVs to hybrids.
What is the Corporate Average Fuel Economy?
Known as the Corporate Average Fuel Economy (CAFE), the standards were first enacted in 1975 in an attempt to regulate the average fuel efficiency of a fleet of vehicles. The standards were tightened during former President Barack Obama's first term in office. Former President Joe Biden continued this tightening when he took office.
For context, federal regulators increased the fuel-economy requirements by approximately 8% for the 2024 and 2025 vehicle model years. This requirement jumped to 10% for the 2026 model years. In contrast, Trump had set the increases at approximately 1.5% per year for model years from 2021 through. When first setting these standards, the Trump administration argued that the more stringent standards would be challenging for gas-powered cars to adhere to using the current technology.
During Thursday's press conference, Trump said that the Biden-era standards were "ridiculous" and "very expensive." The president blamed what he called the "burdensome regulations" on an increase in car prices. According to Trump, car prices have gone up over 25% since that time, with an 18% increase noted in one single year.
According to the White House, the Biden regulations would have sent the average cost of a new vehicle up by almost $1,000 when compared to the price under the new standards. Farley said that the reset of the standard compared with the announcements of the Trump tariffs will actually bring down the price of vehicles by the early part of next year. He went on to say that the sales of Ford's "affordable range" vehicles were up 25% in November despite the overall market being down. Farley said that this is a signal that American consumers are looking for affordable vehicles.
Trump has not made it a secret that he was not happy with the Biden-era vehicle regulations. The president repeatedly calls the desire to bring an end to the gasoline-powered car the "Green New scam." Trump has continued to assert that Americans want to drive gasoline vehicles in addition to the alternative EV and hybrid cars.
Stellantis CEO Antonio Filosa also praised the reset of the regulations. Filosa said that he looks forward to working with the administration to give customers the freedom to choose their preferred vehicles and price points.
This is not the first move by Trump to roll back environmental regulations since he returned to the executive office in January. For example, in June, the president signed a joint resolution that ended the EV mandate in California.
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