Manufacturing News
October 4, 2026
October 4, 2026 · Statewide · Story 3 of 6
CAFE Rollback Eases Stellantis Kokomo's Engine Math, Not the Legal Risk
The federal CAFE rollback eases the standards that previously targeted roughly 50 miles per gallon by 2031, and it ends tradeable compliance credits starting with model year 2028. Stellantis is slated to build its new GMET4 EVO four-cylinder engine in Kokomo starting this year, and the rollback reduces the compliance penalty on four-cylinder-heavy fleets. That eases Stellantis's fleet-average math. It does not guarantee order volume through 2031. A Sierra Club challenge to the rollback is pending, and a future administration could reinstate tighter standards. If you supply Kokomo's engine line, tie your capacity commitments to Stellantis volume guarantees. Those hold up longer than a federal rule still in court.
- For the huddle
Should I count on CAFE rollback relief holding through 2031?
Treat it as current relief, not guaranteed, since a pending Sierra Club challenge and the possibility of a future administration reinstating tighter standards mean the rule could change before 2031. Tie supplier capacity commitments to Stellantis volume guarantees instead of the rule itself.
From the brief, October 4, 2026
- IURC Eminent Domain for LEAP Transmission Lines Clears Despite OUCC Objection
- Duke Energy's $103 Billion Capital Plan Targets Data Center Load in Indiana
- CAFE Rollback Eases Stellantis Kokomo's Engine Math, Not the Legal Risk
- Navistar/International Motors Shuts Springfield, Ohio Truck Plant, 1,400 Laid Off Days Before Trump Rally
- Trump Rolls Back Biden-Era Fuel Economy Standards, Names Indiana Among States With New Auto Investment
- Trump Threatens Up to 300% Tariffs on Foreign Firms That Don't Build U.S. Factories, Names South Korea
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- NIPSCO IURC Investigation Goes Official, Indiana Industrial Property Assessments Jump 25.8%, and Honda's Ohio Plant Opens a Supplier Window
- AES Indiana Rate Case Returns September 17, Aluminum Tariff Jobs at Risk and THOR Industries Restructures: TEG Daily September 11, 2026
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