GM, Ford, Toyota Back Rollback Cutting 2031 Fuel Target to 34.9 MPG
Automakers backed the Trump administration in court over a rule cutting the 2031 target to 34.9 mpg. What it saves automakers and costs drivers in fuel.
The industry group representing General Motors, Ford, Toyota and Volkswagen has sided with the Trump administration in a court fight over weaker fuel-economy rules. The rule cuts the 2031 fleetwide target to 34.9 mpg from 50.4 mpg, and by the government’s own count it adds more than $1,600 to what a driver spends on fuel over a vehicle’s life.
The Alliance for Automotive Innovation filed in support of the rollback on Nov. 2 at the 1st U.S. Circuit Court of Appeals, according to Yahoo Finance. California and other states are trying to overturn it.
What it means for drivers and buyers
The Transportation Department finalized the looser standards on Sept. 28. Its figures show two sides of the same change. Automakers save $1,289 per vehicle on average in compliance costs, the money they would otherwise spend meeting the tougher target. Drivers, in turn, pay more than $1,600 extra for fuel over the life of a vehicle.
The rule also shapes the mix of vehicles automakers build. Under the stricter targets, GM would have had to sell more electric vehicles and fewer trucks, or pay to cover any shortfall, Yahoo Finance reported. A lower target removes much of that pressure.
Who is suing and what automakers argue
In October a coalition of 26 states, counties and cities, including California and Michigan, sued over the rule. Environmental and consumer groups filed their own challenges. The case is in the 1st Circuit.
The automakers’ group says the industry needs stable rules so it can plan upcoming models. If the challengers win, the savings automakers expect from the rollback would be in doubt.
Why GM cares about trucks
GM has more riding on the outcome than most. Its annual report says trucks earn about 160% of its North American portfolio’s average variable profit, compared with about 40% for crossovers. By GM’s own count, trucks made up 1.52 million of its 2.85 million U.S. sales in 2025.
Looser rules have already helped. GM’s third-quarter filing credits “decreased emissions costs of $0.5 billion” for part of its North American gain over the first nine months of 2026. That works out to about a fifth of the segment’s $2.5 billion profit increase, according to Yahoo Finance. Those savings came from earlier rollbacks, not from the September rule, which would add to them.
What happens next
The 1st Circuit will hear the challenge from the states, local governments and outside groups. No ruling date has been reported.
Source: Yahoo Finance
