2025 in Review: Engines Work

by Allen Schaeffer (Engine Technology Forum) Vehicle, engine, and equipment makers, and their suppliers and fuel producers, are adapting and pivoting to meet the demands of the moment.

Reeling from the sharp fall of electric vehicles and the seismic shift in Washington, automakers had no choice but to pivot from big EV and battery investments to boost hybrids and traditional engines. Witness Ford announcing this week a $19.5 billion write-off for making fewer EVs and that it will no longer offer an EV-only version of the F-150 pickup.

The U.S. is not alone. The UK and EU are experiencing their own versions of climate realism. Motorists in the UK are angry about the pinch of punitive measures on diesel cars and the rush to require EVs. In the EU, pressure has been building to the point that walking back a 2035 combustion engine ban is soon to be announced and will reportedly include provisions to allow their continued use and greener fuels beyond 2025. Sensibility is rippling across the pond.

Retaining and Right Sizing Standards is Good News: Federal emissions and fuel economy requirements for cars and heavy-duty trucks will be right sized and retained to align with the times. With supplier contracts and production schedules nearing the red zone of commitment, President Trump announced a reset of corporate average fuel economy requirements that “can actually be met with gasoline and diesel vehicles.” This announcement promised to save consumers money and saved manufacturers from having to meet unrealistic mandates in a market not yet ready for full EVs.

Likewise, EPA announcements that the 2027 heavy-duty truck emissions milestone will be retained, but promising adjustments to reduce costs and complexity, stopped the hand-wringing over whether the standards were happening or not. This was welcome news to most but not all stakeholders, since the trucking industry had sought a four-year delay.

Why This Matters: Achieving near-zero emissions and greater fuel efficiency has taken billions of dollars of investment and is now central and integrated into all of today’s engines, vehicles, and equipment. Unwinding a decade of technology, as some had sought, would be good for no one. The undeniable and tremendous improvements in air quality we enjoy today are thanks in part to new engines, clean air technology, and cleaner fuels. But since the main clean air benefits have already been realized, we’d make more progress by looking for ways to accelerate turnover of the fleet, retiring the oldest and highest emitting trucks and machines and replacing with newer generations. That would be a win-win for all.

Fuel Fight: Boosting fossil fuels was never in doubt this year but renewable fuels also seemed poised for a comeback after years of middling government growth policy. Now as the clock ticks awaiting new and final fuel rules, there is growing concern over details such as proposed changes that limit global feedstock sourcing. Access to a growing supply of renewable fuels is a key aspect of sustainability for users and for engine technology. Engines work well using a diversity of renewable fuels; more please!

On the other hand, this year California policy was clearly identified as what we need less of. The revocation of emissions waivers for California clipped their authority to adopt and enforce more aggressive rules that mandated progressive steps to require electric vehicle (cars and medium and heavy-duty commercial trucks) adoption.

Now uncoupled, California’s plan that required truck manufacturers to produce and sell zero emissions vehicles, and fleets to buy them, is falling apart. And combined with the oil industry moving to close two oil refineries, the distinct possibility of gasoline shortages and even higher energy costs is real. That brings into question whether California’s policy choices are good ones for the rest of the country. READ MORE