CAFE

abbreviationStandard termAutomotive

Corporate Average Fuel Economy regulations that mandate mileage standards for automakers.

Corporate Average Fuel Economy (CAFE) is a set of federal regulations in the United States that dictate the minimum average fuel efficiency a manufacturer's fleet of cars and light trucks must achieve. Automakers that fail to meet the fleet-wide miles per gallon target face heavy financial penalties. This standard drives the industry toward downsizing engines and increasing hybridization.

Heard on the job

They dropped the V8 option on the new truck line entirely just to meet CAFE standards.