The U.S. government’s proposed rollback of fuel economy regulations could signal a potential return of station wagons, a popular vehicle type in the 1970s and 1980s, according to top transportation officials.

“This rule will actually allow you to bring back the 1970s station wagon — maybe with a little wood paneling on the side,” Transportation Secretary Sean Duffy remarked during a CNBC interview. “We can bring more choice to consumers. Minivans are great, but station wagons could make a comeback too.”

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NHTSA’s Proposal and Its Impact on Automakers

The National Highway Traffic Safety Administration (NHTSA), part of the Department of Transportation, announced its proposal on Wednesday to significantly reduce fuel economy requirements for vehicles from model years 2022 to 2031.

Currently, automakers must meet an average of 50.4 miles per gallon by 2031 for passenger cars. Under the new proposal, that target would drop to 34.5 miles per gallon, effectively easing restrictions for manufacturers.

NHTSA notes that past fuel economy standards have unintentionally reshaped the U.S. vehicle market, including phasing out station wagons. Full-size wagons produced by the Detroit Three—Ford, General Motors, and Stellantis—disappeared from U.S. showrooms in the mid-1990s, though smaller wagons persisted until 2008.

Since station wagons are classified as passenger cars, they face stricter fuel economy rules compared to minivans and crossover utility vehicles, which are categorized as light trucks. Loosening the rules could make producing wagons more economically viable again.

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Economic and Environmental Trade-offs

While the proposed rollback could lower vehicle production costs, it comes with environmental consequences. NHTSA estimates that the rule would:

• Reduce upfront vehicle costs by an average of $930 per car.
• Increase total fuel consumption by approximately 100 billion gallons through 2050.
• Cost U.S. consumers up to $185 billion in additional fuel expenses.
• Increase carbon dioxide emissions by around 5%, further impacting climate change efforts.

Transportation remains the largest contributor to greenhouse gas emissions in the United States, making these changes a contentious issue among environmental advocates.

Earlier this year, President Trump signed legislation that ended fuel economy penalties for automakers, effectively removing fines for vehicles dating back to the 2022 model year.

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Industry Reactions and Future Outlook

NHTSA Administrator Jonathan Morrison also raised the station wagon discussion in calls with automakers this week, highlighting potential interest in expanding vehicle options for American consumers.

The proposal may encourage automakers to explore new wagon designs alongside the current popularity of SUVs, minivans, and electric vehicles. Analysts suggest that reviving station wagons could appeal to families and drivers seeking practicality without the bulk of larger vehicles.

As the U.S. continues to balance environmental goals with consumer choice, the potential return of station wagons symbolizes a shift in how regulatory changes can influence automotive design and market trends.