CAFE standards penalize small cars: Honda Fit discontinued, HR-V replaces it

Jefftk's analysis details how CAFE (Corporate Average Fuel Economy) regulations, which set fuel economy targets based on a vehicle's 'footprint' (area between wheels), inadvertently tax small, fuel-efficient cars. Using the 2013 Honda Fit (39 sq ft footprint) as an example, its 67 mpg target was impossible to meet with a non-hybrid five-seater; the best Honda could achieve was 44 mpg, a 23 mpg gap. At $17 per 0.1 mpg shortfall, the theoretical fine was $3,910 per vehicle. This regulatory burden pushed Honda to discontinue the Fit and introduce the larger, heavier HR-V (with a 49 mpg target), reducing the gap and penalty.

The post highlights a perverse incentive: the system rewards larger vehicles by lowering their fuel economy targets, encouraging manufacturers to upsize. Even the fine structure is flawed—penalties are linear in mpg gap rather than gallons-per-mile, meaning a 25 mpg car missing a 50 mpg target burns far more excess fuel than a 50 mpg car missing 75 mpg, yet both face identical per-0.1 mpg fines. Although the penalty was set to $0 in 2025, the regulatory framework remains, ready to be reinstated. Jefftk advocates for a return to size-independent targets or a carbon tax.