Corporate Average Fuel Economy

Corporate Average Fuel Economy (CAFE) is like a report card for car companies that shows how well they are doing at making their cars use less gas. Just like you get grades in school for how well you do on your tests, car companies get grades for how much gas their cars use.

The government sets a goal for car companies. The goal is to make cars that use less gas, so we don't have to spend a lot of money on gas, and it's better for the environment. Car companies have to make sure that the average gas mileage of all the cars they make meets the goal.

For example, let's say the goal is to get 50 miles per gallon (MPG). If a car company makes some cars that get only 30 MPG and some cars that get 70 MPG, then the average of all their cars is 50 MPG. In this case, the car company meets the goal.

If car companies don't meet the goal, they have to pay a fine. This makes car companies really try hard to make their cars use less gas.

So, at the end of the day CAFE is a goal that car companies have to meet to make sure we don't have to spend a lot of money on gas, and the environment stays healthy.