Corporate Average Fuel Economy (CAFE)

Corporate Average Fuel Economy (CAFE) refers to regulations in the United States that set strict fuel efficiency standards for automakers. Each manufacturer must meet an average fuel economy level across their fleet of vehicles sold. This aims to reduce fuel consumption and greenhouse gas emissions, promoting environmental sustainability. By encouraging manufacturers to create more fuel-efficient cars, CAFE standards help consumers save on fuel costs and support efforts to decrease dependency on fossil fuels. Non-compliance can result in fines, motivating companies to innovate and improve vehicle efficiency.