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The Trump administration’s plan to weaken U.S. fuel economy rules, claiming it will make new cars about $1,000 cheaper for consumers – presumably because automakers can use less sophisticated powertrains – ignores a simple fact: fuel-efficient hybrids, plug-in hybrids and electric vehicles cost a lot less to operate. It also won’t slow emissions of carbon dioxide from the transportation sector, the single biggest source of U.S. greenhouse emissions.

Certainly, the move benefits U.S.-based automakers that specialize in big, fuel-thirsty pickups and SUVs that are among the market’s top sellers and make those companies the most money. But it promises to widen the gap between the U.S. auto market and the rest of the world, which is rapidly switching to electric vehicles, especially those made by Chinese brands. Like Cuba in the Castro era, where classic 1950s land yachts stayed in use long after they’d vanished elsewhere, the lax Trump rules could turn the U.S. into a kind of automotive Jurassic Park, dominated by gargantuan vehicles not found in other markets. Transportation Secretary even advocates turning the clock back to an era before strict MPG regulations. “This rule will actually allow you to bring back the 1970s station wagon — maybe a little wood paneling on the side," he told CNBC.

(Oddly, Trump also expressed admiration for Japan’s tiny, cute kei cars, claiming he authorized Duffy to let them be built in the U.S. The problem is they don’t comply with U.S. crash safety guidelines.)

“Globally, Europe, China, and other major markets continue to move forward with tighter efficiency rules and accelerated EV adoption,” said Jessica Caldwell, chief analyst for auto researcher Edmunds. “As U.S. standards shift, the domestic market may develop differently than other regions, which could influence the pace at which newer technologies or vehicle options become available to American consumers.”

Slashing the target for new vehicles to an average of only about 34 miles per gallon, versus 50 mpg under the current rules, means General Motors, Ford and Stellantis, which specialize in high-margin light........

© Forbes