This is the purest illustration of rule by committee. It beautifully illustrates how competing interests result into something that's somehow worse for almost all involved than doing nothing. On paper, the goals sounded noble: Reduce emissions from fleets. Avoid crushing small businesses that genuinely need work trucks. Nudge consumers toward cleaner, more efficient vehicles.
In practice, CAFE is an abomination. They created a loophole big enough to drive a Ford Super Duty through, and then the automakers did exactly that. A quick recap for anyone who has not followed this saga since the 1990s:
here has long been a dual standard: one for "passenger cars" and a more lenient one for "light trucks", the latter including pickups, vans, and sport-utility vehicles (SUVs) That classification created what many call the "SUV loophole." In effect, a vehicle that might, in all practical respects, resemble a car but classified as a "light truck" could escape the stricter fuel-economy and emissions constraints applicable to cars.
Because automakers must meet only a fleet-wide average, not each vehicle individually, this gives a strong incentive to produce and sell more of the looser-regulated "light trucks." Light trucks with poor fuel economy can be balanced in the fleet average if the manufacturer sells enough efficient cars (or EVs, nowadays) but with the loophole,
upsized SUVs or trucks became a rational choice. This dynamic has been identified in economic analyses of CAFE's impact on the US vehicle market. this does not prove that every driver of an SUV did so because of regulations. Consumer preferences, marketing, and cultural factors also matter. But the regulatory structure plainly created a meaningful incentive for automakers to shift production toward heavier, less-efficient but more profitable SUVs and light trucks. When the consumers must choose either vehicles too small for winter, families, and vacations or a behemoth because there's no actual light pickup pr large sedan on the lot, they're not picking the smaller one.
And let's not pretend it's all an innocent mistake. The automotive lobby absolutely noticed what these overlapping rules made possible and spent years making sure the loopholes stayed open. Millions of dollars
flowed into Congressional campaigns to ensure that "light truck" definitions remained comically broad. Tighter average fuel economy numbers or looser ones will do nothing to fix this. The whole scheme needs to be undone.