President Donald Trump and his administration have set their sights on a new target for deregulation: the auto industry. Specifically, fuel economy and tailpipe emissions.
Major automakers have now joined together to urge the president not to freeze fuel-economy targets for the 2025 model year, Reuters reported on Monday. Although automakers have largely been in favor of relaxing regulations surrounding carbon dioxide emissions, the Alliance of Automobile Manufacturers, which represents all major automakers, is expected to favor increased fuel-economy standards.
The administration is currently studying how to revise the standards, which were put in place under the Obama administration in 2011. Right now, corporate average fuel economy (CAFE) standards sit at 50 mpg for 2025. Nixing the regulation could stall investments in technology and engineering to reduce greenhouse gases.
“We support standards that increase year over year that also are consistent with marketplace realities,” the automaker alliance plans to tell the U.S. House of Representatives on Tuesday.
Thus far, it’s been a rough go for the Trump administration, which seeks to overrule California’s long-standing ability to set its own emission and fuel economy regulations. California, along with 16 other states, has sued the administration. An unnamed automaker is expected to pitch the California situation like a trade deal that needs renegotiating. If the U.S. and California can’t find common ground, it could become a lengthy legal battle over state rights.
This Friday, President Trump will meet with numerous automakers to discuss potential fuel-economy revisions. General Motors, Ford, Fiat-Chrysler, Toyota, Volkswagen and more will attend.