General Motors and Ford have signed off on a deal to increase fuel efficiency to 54.5 miles per gallon by 2025.

The Detroit News reports that the two auto giants are the first to sign memorandums of understanding on the 2017-2015 fuel efficiency standards, and that other carmakers are preparing to sign MOUs by the end of the day.

The federal government is preparing MOUs that reflect a last-minute change to the agreement, the newspaper said, after talks with automakers and the state of California went on until 1 a.m. this morning.

Hyundai U.S. chief John Krafcik told the paper the deal would “right-size the fleet. There are going to be fewer vehicles over there bought for the occasional need to carry nine people or seven people.”