Jim Farley expects vehicle prices to fall under the new fuel-economy standards, giving buyers more choice in gas, hybrid, and EV segments
Ford CEO Jim Farley has joined several of his American counterparts in supporting the Trump administration’s decision to reset federal fuel-economy standards.
The move, Farley says, gives automakers the breathing room to produce more affordable vehicles in the United States without walking away from electric innovation or efficiency goals.
Farley’s core argument seems to be that regulations were so strict that they effectively squeezed automakers out of the low-cost segments so many buyers still rely on.
Read: Trump Admin Pushes Fuel Economy Shakeup And The Impact Could Be Huge
Speaking at a press conference with President Donald J. Trump on Thursday, Farley called the update “a victory for affordability and common sense,” adding that Ford will now be able to offer cheaper versions of its most popular models and launch new price-focused products.
“We believe that people should be able to make a choice, as you said, Mr. President,” Farley said. “And we will invest more in affordable vehicles. This allows us to invest in affordable vehicles made in the U.S., which we will take the lead on and will allow us to make vehicles more affordable.”
Trump, sitting beside him, said, “People were brainwashed. This is a ‘green new scam.’ And people were paying too much for a car that didn’t work as well. And now they’re gonna have a great car that’s gonna be environmentally friendly, but it’s gonna cost you a lot less and it’s gonna work great. All of the nonsense is being taken out of the cars.”
Political Theater or Market Reality?
Farley stopped short of framing the move as an ideological shift, instead focusing on the economics. He argued that the tightened CAFE standards under the previous administration imposed costs that made entry-level vehicles much harder to justify.
That pressure, he said, pushed automakers toward higher-margin EVs and hybrids simply to meet fleet targets.
“What you should know is that this is a victory for affordability and common sense. As the president 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 later in an interview on “Fox & Friends” Thursday.
Farley added that the earlier fuel-economy system “was totally out of touch with market reality.” Automakers, he said, were forced to sell EVs and other vehicles to stay compliant, even when customer demand wasn’t there.
“We were forced to sell EVs and other vehicles. We’re not going back to gas-guzzlers,” he continued. “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.”
Balancing Choice and Compliance
Ford’s CEO also clarified that the company isn’t returning to inefficient gas models, noting it already sells a wide range of EVs and hybrids. GM’s CEO Mary Barra recently made similar comments.
Also: GM’s Mary Barra Promises Cleaner Engines, But Looser Rules Fuel More Gas Guzzlers
The reset rolls back the steep increases introduced under the Biden administration, which raised fuel-economy requirements by 8% for 2024 and 2025 and 10% for 2026. Federal officials previously estimated those rules would add nearly $1,000 to the average new-car price.
By contrast, the new standard lowers compliance costs and, according to the White House, will save American families a combined $109 billion. Now, the market waits to see if automakers really do deliver on their promises of rolling out more affordable models.
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