Corporate Average Fuel Economy (CAFE) Regulations

Corporate Average Fuel Economy (CAFE) regulations are standards set by the U.S. government that require automakers to achieve a certain average fuel efficiency across their fleet of vehicles. This encourages manufacturers to produce more fuel-efficient cars, reducing fuel consumption and emissions. Each automaker's fleet must meet or exceed these standards, calculated based on the combined miles per gallon (MPG) of all their vehicles sold. The goal is to promote energy conservation, lessen environmental impact, and help consumers save money on fuel over time.