CAFE

Transportation & Travel abbreviation · Driving

CAFE
Stands forCorporate Average Fuel Economy
CategoriesTransportation & Travel

CAFE stands for Corporate Average Fuel Economy, a driving abbreviation.

US federal standards requiring each automaker's fleet of new cars and light trucks to meet an average fuel economy target, set by NHTSA. CAFE rules have shaped vehicle design since 1978.

Example: Selling more hybrids helps the automaker meet its CAFE target for the year.

Usage notes

Created by the Energy Policy and Conservation Act of 1975 after the Arab oil embargo. Separate, looser standards for light trucks helped drive the boom in SUVs and pickups. In 2025 Congress eliminated the civil penalties for failing to meet the standards. Pronounced like the word "cafe."

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