The Obama administration has reached a compromise with automakers on a new fuel economy target for cars and trucks, ending months of negotiations on this pivotal mandate for the auto industry.
Automaker fleets will now have to average 54.5 miles per gallon by 2025, according to people familiar with the plan.
The new proposal includes average increases in fuel economy of 5 percent for cars and 3.5 percent for light trucks through 2021, with a 5 percent increase for all vehicles after that.
One person said there will be a midterm review that may allow trucks to stay below the 5 percent target after 2021.
Sources told Reuters that some overseas automakers were reluctant to embrace the plan because of the more phased in schedule for light trucks, which remain a bread and butter segment for U.S. manufacturers and include pickups, SUVs and vans.
So there's one standard for cars, and another, less stringent standard for trucks. U.S. manufacturers focus more on trucks than many of their foreign competitors do. Is this de facto discrimination against foreign goods?