Ford CEO Jim Farley Hails Trump's CAFE Rollback, Reaffirms Investment In US-Made Cars—Sean Duffy Says Decision Will Save $109 Billion For Americans
Ford Motor Co. (NYSE:F) CEO Jim Farley has reaffirmed the automaker's commitment to building more affordable cars as President Donald Trump scaled back Corporate Average Fuel Economy (CAFE) norms.
More Investments In U.S.-Made Affordable Vehicles
Speaking during a press conference at the White House on Wednesday, the CEO reaffirmed that the company will "invest more in affordable vehicles." Farley added that the investment will help Ford "take the lead on" American-made vehicles, increasing affordability.
Transportation Secretary Sean Duffy, quoting a video with Farley's comments on Wednesday, shared his thoughts via X. "Letting auto manufacturers make the cars people want isn't just common sense," Duffy said, adding that the decision to roll back CAFE norms will save "$1,000 on the average car price."
Duffy also added that the decision would help save "$109 billion in total" for Americans over the next 5 years. He then hailed Trump as "the affordability president!"
Trump Calls CAFE Norms Ridiculously Burdensome
During the press event, Trump announced the decision to roll back CAFE norms. "We’re officially terminating Joe Biden’s ridiculously burdensome, horrible, actually, CAFE standards that impose expensive restrictions," Trump said.
The norms regulate the distance covered by a manufacturer's vehicles on a gallon of fuel. Carmaker Stellantis NV (NYSE:STLA) recently paid over $190 million in CAFE fines.
EPA Proposal, Ted Cruz's Affordability Promise
The decision comes as the Trump administration's EPA had earlier signaled it would rescind the 2009 Endangerment Finding, which forms the legal basis for much of the U.S.'s climate action and emissions norms.
The decision would not only take legal pressure off automakers to meet emissions standards but also make ZEV credit sales, a major source of revenue for companies like Tesla Inc. (NASDAQ:TSLA) and Rivian Automotive Inc. (NASDAQ:RIVN), redundant.
Meanwhile, a Senate committee chaired by Sen. Ted Cruz (R-TX) plans to challenge automotive safety measures, including auto emergency braking (AEB) and child reminder systems that alert drivers when a child is in the rear seat, amid vehicle affordability concerns.
Ford's November EV Sales Drop
Ford, on the other hand, released official sales figures for the company's November performance, illustrating a marked decline in EV adoption. Ford sold 4,247 EVs in November, a 60.8% year-on-year drop from last year’s 10,821 units.
The figures come as Farley, during the company's third-quarter earnings call, had predicted EV adoption in the U.S. could remain at 5% as demand falls for electric vehicles.
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Price Action: F jumped 1% to $13.09 at Market close, surging 0.30% further to $13.13 during the After-hours session, according to Benzinga Pro data.
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