A tentative deal was struck just yesterday, but the White House is pushing for an announcement of the 2017-2025 CAFE standards by Friday.
With much larger issues looming, the White House says it intends to announce new corporate average fuel economy standards by Friday. The Obama administration reached a tentative agreement with automakers that would extend through 2025 on Tuesday.
The White House had been pushing for a 56.5mpg standard by 2025, but lowered that proposal to 54.5mpg earlier this week. Although no automaker officially signed off on the proposal, it is believed that most of the larger automaker will endorse the plan.
However, not all car makers are on board, with Volkswagen, BMW and Daimler opposing the proposed CAFE standards. If the German automakers don't sign off on the new regulations, they could face millions of dollars in fines and penalties.
Per the terms of the proposal, passenger cars would need to improve fuel economy by 5 percent every year between 2017-2015. The rules are a little less stringent for light trucks and SUVs, requiring an annual increase of 3.5 percent between 2017-2021 before jumping to 5 percent from 2022-2025.
Automaker must currently meet a 35.5mpg standard by 2016.
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