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Corporate Average fuel Economy regulations introduced in the United states aimed at reducing excessive fuel consumption as well dealing with emissions. This was in reaction to the Arab oil embargo.
Learnt from Internet about CAFE is follows,
The Corporate Average Fuel Economy (CAFE) are regulations in the United States, first enacted by the U.S. Congress in1975, in the wake of the Arab Oil Embargo and were intended to improve the average fuel economy of cars and light trucks (trucks, vans and sport utility vehicles) produced for sale in the United States
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