“CAFE” stands for “Corporate Average Fuel Economy,” a standard for the average EPA-estimated fuel economy across all passenger automobiles and light trucks, up to 8,500 pounds, that are offered for public sale by a given manufacturer. The EPA evaluates the fuel efficiency of cars and trucks separately. Each model year, the manufacturer’s lineup of products must meet that year’s CAFE standard, or the manufacturer is subject to penalties.
Car shoppers looking for a blend of versatility and efficiency tend to split the difference between the two vehicle classes and buy the most fuel-efficient SUVs they can find.