A recent deal between the California Air Resources Board (CARB) and four automakers—Ford, Honda, BMW and VW—might have come as surprise to industry outsiders: it is not often that such giants of industry in any sector volunteer themselves to stricter regulation. The agreement obliges the companies to increase the fuel economy of their fleets by 3.7% year over year between model year 2022 and 2026. This could partially counter efforts by the Trump administration to roll back Obama-era federal fuel economy targets of 54.5 miles per gallon (mpg) for passenger cars by 2025.
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