US says new fuel economy rule could lead to return of station wagons

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The Trump administration's proposed rollback of fuel economy standards may revive production of station wagons, which were largely phased out due to stricter car fuel regulations.

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The U.S. Transportation Department's NHTSA has proposed weakening fuel economy rules for 2022–2031, which could allow automakers to reintroduce station wagons—long discontinued due to stricter passenger car standards. The move aims to reduce vehicle costs but may increase fuel use and emissions by up to 100 billion gallons and $185 billion in fuel expenses through 2050. The administration argues it restores consumer choice, including nostalgic models like the 1970s station wagon.

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WASHINGTON, Dec 4 (Reuters) - The Trump administration says its new fuel economy rollback proposal could allow automakers to resume building station wagons, a staple of 1970s and '80s family travel.

"This rule will actually allow you to bring back the 1970s station wagon -- maybe a little wood paneling on the side," Transportation Secretary Sean Duffy said on CNBC. "We can bring back choice to consumers so yeah the minivan is awesome but maybe the station wagon is cool too."

The Transportation Department's National Highway Traffic Safety Administration said in its proposal Wednesday that fuel economy regulations led manufacturers to reshape the market in unanticipated ways "such as by almost eliminating the production of station wagons."

The Detroit Three automakers ended production of full-size station wagons in the mid-1990s but smaller wagons remained in production by U.S. automakers until 2008.

Cars face more stringent standards than trucks. Station wagons are considered passenger cars but minivans and crossover utility vehicles are light trucks.

NHTSA Administrator Jonathan Morrison separately raised the issue of station wagons in a call with automakers earlier this week.

On Wednesday NHTSA proposed significantly reducing the fuel economy requirements from model years 2022 to 2031, requiring 34.5 miles per gallon on average by 2031, down from 50.4 miles per gallon (21.4 km per liter).

NHTSA estimates the proposed rule would reduce average up-front vehicle costs by $930, but would increase fuel consumption by around 100 billion gallons through 2050 - and cost Americans up to another $185 billion for fuel and increase carbon dioxide emissions by about 5%.

Transportation accounts for the single largest percentage of U.S. greenhouse gas emissions.

Earlier this year, Trump signed legislation that ended fuel economy penalties for automakers, and NHTSA said they faced no fines dating back to the 2022 model year.

Reporting by David Shepardson; Editing by Chizu Nomiyama, Alexandra Hudson

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