Ford Motor Chief Executive Jim Farley on Thursday backed the Trump administration’s decision to reset federal fuel-economy standards, saying the move would allow automakers to build more affordable vehicles in the United States without abandoning electric and efficiency technologies.
Speaking at a press conference alongside President Donald J. Trump, Farley said the previous regulatory framework had made it difficult for carmakers to compete in lower-cost market segments. “What you should know is that this is a victory for affordability and common sense,” Farley said. “We will be able to offer more affordability on our popular models, and we’ll be able to launch new vehicles built in America that are more affordable because of this rule change.”
Farley said the earlier fuel-economy standards had pushed automakers toward higher-margin electric and hybrid vehicles in order to meet fleet targets, even as demand for lower-priced gasoline models remained strong. “We were forced to sell EVs and other vehicles. We’re not going back to gas-guzzlers,” he said in a later interview. “We have a lot of EVs and a lot of hybrids at Ford, but now customers get a chance to choose what they want, not by what we force on them.”
The revised policy rolls back steep increases introduced under the Biden administration, which raised fuel-economy requirements by 8% for 2024 and 2025 and by 10% for 2026. Federal officials had previously estimated those rules would add nearly $1,000 to the average price of a new vehicle. The White House said the reset would lower compliance costs and save U.S. households a combined $109 billion.
Farley emphasized that Ford Motor would continue to invest in electrification and efficiency even under the looser requirements. “We believe that people should be able to make a choice,” he said. “And we will invest more in affordable vehicles. This allows us to invest in affordable vehicles made in the U.S.” General Motors CEO Mary Barra has recently expressed similar views on the policy shift.