CAFE (Corporate Average Fuel Economy)

CAFE (Corporate Average Fuel Economy) standards are regulations set by the government to improve the fuel efficiency of cars and trucks produced by automakers. They require manufacturers to meet specific average miles per gallon (mpg) targets across their entire fleet, encouraging the production of more fuel-efficient vehicles. If a company's overall fleet exceeds the standard, they avoid penalties; if not, they may face fines. CAFE aims to reduce energy consumption, lower fuel costs for consumers, and decrease environmental impact by promoting the development of vehicles that use fuel more efficiently.