Shortly after Donald Trump released his plans to impose new rules on emissions regulations, General Motors and 16 other carmakers asked the President to return to the negotiating table. The Trump emissions regulations, expected to be made public this summer, would freeze mileage standards at about 37 miles per gallon for cars, down from a target of 54.5 miles per gallon by 2025.
This drastic contrast in emissions regulations, at least, compared to what had been set by the Obama administration, would cause environmentally conscious states such as California to go against the administration’s decision and continue enforcing their own, stricter rules.
Essentially, what this could lead to is a split in the U.S. auto industry. For a carmaker, this is a nightmare as it would require manufacturing cars that would respect different regulations for one market, leading to regulatory headaches and high development costs.
GM, along with big-name carmakers BMW, Ford, Honda, Mazda, Nissan, Subaru, Volkswagen, and Volvo, wrote a letter to the White House stating that the Trump emissions regulations threaten to cut their profits and produce “untenable” instability in the manufacturing sector.
The automakers sent a similar letter to California Governor Gavin Newsom. In the letter, automakers state that they would like to see a “midway” standard between the current Obama rules and the rollback proposed by Trump.
“We strongly believe the best path to preserve good auto jobs and keep new vehicles affordable for more Americans is a final rule supported by all parties – including California”, said the letter.
The problem is that Newsom is not interested in a “midway” deal. According to him “a rollback of auto emissions standards is bad for the climate and bad for the economy.”
“I applaud the automakers for saying as much in their letter today to the President,” he added. “We should keep working towards one national standard, one that doesn’t backtrack on the progress states like California have made.”
It looks appears we’re about to witness an arm-wrestling match between The White House, the state of California, and the American auto industry. We’ll tell you more about this story as more information comes through.
Meanwhile, Subscribe to GM Authority for more auto industry news and around-the-clock GM news coverage.
Source: The New York Times
Comments
Well it is the smaller markets like California that should fall in line not the majority.
Too often this country is led by a minority of the people vs the majority.
As for solving this it is in the hands of the automakers. If they want to stay with stricter standards then ban together and all agree to stick to them collectively.
The government is not going to penalize them for exceeding the standards.
My thought is if automakers really want the higher standards then why do they need a law.
Let really see who is telling the truth here by signing a industry agreement.
i agree. trump lowers the standard for everything he touches.
California is not a minority market. It’s the most populous state in the union and has the most financial pull as the majority of cars in the US are sold here. Also, one of the main reasons California enacted any strict emission guidelines in the first place was to quell the severe smog problem that still plagues the state to this day (albeit much less prevalent than in the 60s through the 90s).
As for self-regulation, we’ve seen first hand that it doesn’t help when saving money is on the line (pharmaceutical industry and reducing prescription costs, the oil industry and every oil spill, etc)
California is looking backwards every day, #1 in high taxes, illegals, homelessness, a train to nowhere, narcissisim, cross-dressing anything with a shrinking middle class. I think Mississippi is looking more futuristic then you guys and I don’t like the south too much….
Guestt – you just showed your real America. First, get rid of California, then get rid of the South. After that, get rid of every state Guestt isn’t in right now. Then get rid of everybody in his state that voted different to him. Then get rid of the people who voted like him but weren’t born in his state. Then get rid of…
Eventually, Guestt, you will be America. All alone in your America, with a huge border wall around your house.
Then we can take it you’d rather live in Mississippi….California won’t miss you.
Lol, California also failing in education as you didn’t read saying “I don’t like the south too much”. Like others said if I want to live in a left-leaning hellhole I’ll live in California. BTW I wish some of my new California neighbors go home….
California won’t miss all the native Californians that are leaving en
masse, either because California isn’t California anymore.
And the native Californians like myself who’ve relocated from leftist
dystopias like the SF Bay Area/Silicon Valley to lesser known, still
untainted parts of the state won’t miss these cesspools, either. All anyone
can do anymore is walk away and watch the insane take over the asylum from a safe
distance of at least 150 miles. None of the legions of tech minions on
H-1B visas working on anti-conservative speech algorithms at Facebook have
any clue what once made the SF Bay Area so special nor could any of them
care less. They’re here for the money. They buy a lot of fancy status
symbol cars because status is a huge part of their respective cultures and
almost none of those cars are branded American except Tesla. GM actually
lost California decades ago, so what Scott3 says is entirely true. CA
doesn’t give a damn about GM and GM would wiser focus its energies on the
rest of America like Trump. While 20 years ago, most Californians were
still by and large proud Americans (and everyone everywhere else still
wanted to visit!), today, we’re rightfully maligned as a cauldron of
extreme wealth and poverty brought by rampant bleeding far left ideology and an
accompanying unparalleled greed, selfishness, shortsightedness and toxic
anti-Americanism that torches everything in its path like some kind of
leftist napalm.
GM doesn’t need California, for by and large CA is a lost cause. Focus on
real Americans – the only ones still buying GM outside of China, anyway.
“…unparalleled greed, selfishness, shortsightedness and toxic
anti-Americanism that torches everything in its path…”
Oh, you meant to say TRUMP…
California über alles
über alles California
It puts a crimp in their quest to all go electric is what relaxed MPG standards kind of do IMO.
You’re hitting the nail on the head. Despite the hype, electric vehicles are a politically driven product, not a market driven product. If this was not the case, there’d be no need for a standard at all, people would be clamoring for electrics to the total exclusion of ICE vehicles. Standards are an object of forced action. Markets are objects of free will actions. All the manufacturers know that if they aren’t ALL FORCED to go electric, those that dump money into electrics will fall into ruins and those who cater to the market will prosper. Again, all the auto CEOs know that they cannot afford to put resources towards electrics unless their competitors are forced to do the same. While electric vehicles have their place and will eventually have their time, forcing it is a disaster. Politics ruins everything
LMAO because all the talking heads in the auto industry keep saying that they will all have a zero emissions fleet by 2030 which means it doesn’t really matter what Federal guidelines will be as gas mileage standards could revert to 1970 and it wouldn’t matter given that GM CEO Mary Barra has said the company will have 20 electric vehicles by 2023; thus, why argue when the industry plans to phase out of the gas power vehicle business.
From the three comments above, it seems that only one of the three may fully understand this at all. Scott3 doesn’t seem to even know what the largest and most important auto-market in the USA is. Not that the rest of the market doesn’t matter as it does matter very much so. But don’t discount the the power of the biggest market in the USA.
I’m as much of a car lover as anyone may be. I love cars, trucks, SUV’s, motorcycles, etc. I just really enjoy a good ICE and the sounds they (do or can) make. But I’m also quiet aware of the dangers from climate change. Rolling things back is certainly not the answer.
don’t forget all the states that follow california’s lead.
Dan the state of California May be the largest state market but they are not larger than the rest of the country combine,
As for the mfg’s if they want to do a 50 state higher standard who’s stopping them?
If they want they could agree to a standard together and do what they want.
It’s not like the EPA is going to fine them for exceeding the standard.
The real issue is the California standards are leading to cars many really don’t want that cost much more and are even more expensive to maintain.
It is almost to the point many can not even consider a new car.
If I wanted California’s onerous laws and high costs, I’d live in California…I shouldn’t have to be bound by their bad governance. I worked on a climate research ship for two years and can say with 110% certainty that “man made climate change” is a scam. Leading advocates of renewables are even giving Ted talks about it these days, talking about their failures and admitting nuclear the best way to go. And how many times over past ten years have these “climate scientists” been caught fudging the data and/or fighting FOIA requests? I can think of three off the top of my head. Climate change isn’t about science, it’s about money and control…let me show you how. Examine these two statements:
A) Let me take most your money and control your life
B) Let me take most your money and control your life, or else extinction!
See, the ignorant masses are too smart for A, bit too dumb to resist B, therefore climate change. CHA-CHING$!!
Back your claim. Which Climate Ship. What was your job? Data collection or dump collection?
The USCGC Polar Star…Was a navigator/conning officer…everyone hangs on the bridge as ship nears objectives/points of interest…conversations ALWAYS about what claims/strategies will beget the most grant money. One trip at North Pole I enquired about the status of the ozone hole to be conversational, “scientists” looks at me and says “oh, we now know it’s natural, caused by half year in darkness…but we gotta write our papers and get our money.” As he’s saying this he’s rubbing his fingers and thumb together in the international gesture of cash money. Also had good fortune of meeting James Hansen, the guy who fought FOIA request for his climate models and was uncovered in the December 2009 Wikileaks dump to have outright fabricated all the outcomes…in other words, he did everything he could to not “back his claims” as you’d likely put it. Because of course the claims were all BS. But, mmmm mmm mm, that sweet money and control! The scam must go on…the elites demand it!
California should just ban gas cars priced over $80k. They’re all gas guzzlers. But they don’t really believe in climate change, or the elites would walk and bike instead of fly around the world and drive BMWs and Range Rovers all day. They want everyone else to drive econoboxes. Then they could ban pickup trucks so the interior will secede. The coasters don’t like those hicks anyway.
California can manage themselves and build out whatever extensive public transit they can afford. Let them find that balance on their own. They are the largest car market in the country and companies would be foolish to ignore them entirely.
However….forcing people in places like St Louis, Chicago, Memphis, or Atlanta to choose between walking or spending an insane amount of money on a car because it burns fuel that California approves of is ridiculous. It will collapse the economy in those areas when cheap, affordable transportation is no longer available. We are already seeing unwanted, costly technology being forced upon us in the name of emissions – such as more expensive, lighter building materials and automatic start/stop features that seem universally hated.
POTUS is right. The Obama admin’s policies were trying to accomplish lofty environmental goals, but they can easily b interpreted as a huge “F-you” to the working class and flyover states that need affordable means of transportation. That may have been a contributing factor as to why his party lost in 2016.
Good thing California is as big of an auto market as they are. Carmakers will probably build versions of almost everything for them if it came to that.
Forcing OEMs to build two versions of the same car for you would be: “….forcing people in places like St Louis, Chicago, Memphis, or Atlanta to choose between walking or spending an insane amount of money on a car because it burns fuel that California approves of is ridiculous. It will collapse the economy in those areas when cheap, affordable transportation is no longer available.”
As a developer in Colorado, I can assure you with certainty that the demographic that buys the bulk of cars is fleeing California in droves. In fact, some industry publications put it at 300,000 people a year. Those people will continue to buy cars in Colorado, Arizona, Nevada, Utah, Idaho and Texas (the states where most Californians are fleeing to). While California is 7th largest economy, a few years ago it was 5th…and its leaders are speeding the declining exponentially each year. Manufacturers will only build one version of their vehicles, and Californians simply won’t have access to them. That’s how this plays out.
This is just noise as the adminstration is considering revoking the CARB license which allows California to set such high emission standards. I really hope they do because CARB is designed to end ICE engines regardless of how clean they are. And if California decides to jump off the deep end, I don’t see Washington and new England following if they go total bonkers.
I guess Putin is good with 37 mpg.
I got your Green Deal Up My Nose
I agree with current POTUS.
California’s problems shouldn’t govern the rest of the country. Let them have their own standards and let their buyers pay an arm and a leg for stricter emissions controls.
Don’t release cars for in California until they revise their absurd laws. If they want to be the hammer and sickle state, like the Cuban island they admire so much, then they can drive older cars too.
Here’s my take on it
1. ICE should be available for enthusiasts (racing, fun street cars, Off-Roaders) and heavy duty requirements (towing, construction, etc.)
2. The average American has absolutely no idea how a car works, at all, and doesn’t need an ICE in any way shape or form.
The best course is to keep performance vehicles ICE until electric can surpass their performance, if ever. However every boring car out there would be no different, performance wise, as an EV than it would be as an ICE. These are the Camry’s, Malibu’s, Altima’s, Cruze’s, Civic’s, Kia’s, Hyundai’s, Impala’s of the world and any other boring FWD sedan out there. They should become EV’s as soon as possible. If not for climate change, than to leave oil and gas for the rest of us.
Thank you for the truth. All these triggered right wing nuts are fighting like Sherman and Patton for what? The “right” to Commuter worker transport boxes. Biden loves Corvettes and Tenn Republican Massey has a Tesla. In the words of every right wing nut there is: “Get Over Yourselves!”
The exact same fight happened in music over synthesizers in the 70’s and sampling in the 90’s. All the luddites triggered and said they’ll all lose their favorite music etc etc. Instead, classical music stayed, Jazz stayed, rock stayed, metal stayed, everybody kept their vinyl and CD’s and MP3’s, and some fans now like DJ’s as well.
Nobody “lost” anything. But here we have our grandkids at stake. So the triggered should learn to learn first before their gut feel gets a Dunning Kruger lemon juice squirt.
So, the rest of the US should follow suit and adopt Kalifornia’s “Hammer & Sickle” regulations? LOL!
Laughable!
Progress, eh Newsom? Like the progress you made when you and your loony tune buddies voted to provide illegal aliens with taxpayer funded healthcare? Goofball!
Pizza Babies
You leftists crack me up! You’re more concerned with cleaning up the 50lbs. of dog sh*t in your neighbor’s yard, than you are with cleaning up the 100lbs. of dog sh*t in your own yard.
Cuckoo…cuckoo…cuckoo…
Personally, I think it’s all stupid the way they have the regulations set up. The should have categories for different classes of cars to be in a specific “Targeted Range.” The way things are going currently, they’re going to kill off anything that’s not an electric vehicle.
I feel like Mary Barra is completely out of touch and an awful CEO. I look forward to the day they shove her out the door. Too bad she’ll get a golden parachute like every terrible CEO in this country.
Hawaiian drug tunnels!
The United States of America only works when you listen to all 50! Californians should mind there own business and leave the rest of the country alone. Send your representatives .do things for your state only not impose a mandate on the country. If you think your views on cars or anything else matters outside your little bubble you are an idiot! Car makers rip you off. They make cars that fail on purpose to keep alive the auto parts and repair industries. Freedom means you should not be regulated by anyone. We are all here for a short time. please don’t tell me what to do with mine.
16 states support CARB, and their voters have returned their governments several times even though they know this. 20 other states support portions of CARB. That’s 36.
How about YOU listen to ALL 50?
California has not mandated that any other state follow their standards. The issue is that the FEDS want to lessen the standards and force California to accept them. Who’s telling who what to do?
CA has no legal authority to mandate other states do anything. Saying CA mandates the other states is disingenuous. However CA is seen as a trend setter in many aspects, thus some feel that CA policies should be emulated.
Granted this may be a “states’ right” issue but the Feds mandate lots of things that states must do.
There are so many “national standards” why not one for emissions?
If GM and the others had any guts they would simply phase out CA sales. Watch CA back off.
Really? Phase out sales to the largest market in the country? Joke, right?
If the cost of designing any product just for sale in CA becomes burdensome then the whole concept of selling in that market has to be reevaluated. Is there really a difference between Beverly Hills banning cigar sales and the cigar makers declining to ship products to Beverly Hills. Forced pull out or voluntary pull is the same result.
So like any junkie, GM and the other brands are totally addicted to sales in CA and will be bending over backwards to keep CA happy. What would happen if CA passed a law banning cars with horsepower over 100 BHP to save the planet? Mandated only two seaters? The feds regulate almost every aspect of car design, from color and placement of tail, brake, head lights, turn signals, safety standards such as airbags, collapsible/crush-able steering wheels, seat belts , mirrors, and the old 5 MPH bumpers. This should hold true for emissions.
The threat of a phased pull out, phased being the key, should cause CA to stop blackmailing the rest of the country. Just think GM says, “Starting in 2021 we will cut back shipments to CA by 5%.” Prices will go up giving more money to GM and their dealers. OR prices go up, sales go down, tax collections go down, and CA keeps spending money like drunk monkeys…
“Phased pull out”? So GM pulls out at whatever speed you want, thus alienating auto customers in CA now and in the future. All other car companies use this opportunity to rush in and soak up those once GM sales, laughing all the way to the bank. GM loses significant to ALL market share in CA.
“Addicted to sales”? Is that even supposed to make sense? Thats like saying humans are addicted to water. Are auto companies now a days NOT supposed to sell cars? What happened to “the customer is always right”? And you want the feds to have MORE control over states?
How many markets in the world does GM not sell cars? Why not? And do they sell every model in every market? Of course not/ What about the dropping of sedans? Is that not giving up a market?
(I would not dictate the speed of the phase out as you imply) The point overlooked is that CA may very well give up on the pipe dream of controlling how cars available for sale to the rest of the U.S. of A.
The comment on “addiction” was not meant to be taken literally.
CA is not the customer. “Always right”? Generalizations are not always true. I am a customer at a Chevy dealership. I want to buy, from the factory, a new Malibu with a turbo-charged 6.2 and a 6 speed manual. Cost is no object. GM can not and would not build it. Further I do not want to buy my GM in any color other than Pea Green. Am I still right? Do I get my car?
Here’s a simple example: Go into Burger King and ask for an uncooked burger. You’re may be the customer but you are not getting it your way.
You’re right. Each state can have their own currency, their own highway width and marking standards. The list of what states could control goes on. Maybe Florida could ban tourists from CA. Hey, there’s an idea. To drive a car in any state you must have a license issued specifically from that state.
Every customer (You) decides which product he wants to buy. I buy my bread, pretzel or sausage where I want if the quality and the price is right!
Inexpensive goods are always good, but the goods should not be cheap. So this is synonymous with vehicle standards. I see Mr. Trump’s ideas positively, but also those of California. A technical competition is always better than anybody. It just has to make sense. Think globally and produce the goods locally with local materials and low pollutants.
When buying a product such as a car or truck is also true, with the purpose is important. A family buys rather a truck or station wagon like a single who buys a small car or sports car.
Very important here are also the maintenance costs such as tax, insurance and fuel.
So we drive here in Germany (comparable to California) a small car OPEL Corsa S for the daily rides. At the weekend we drive with my OPEL Cascada S or I with my BMW S1000RR to relax.
The cost of the 3 vehicles are reasonably cheap, since hobby.
Oh the irony. The trump loving, california hating conservatives are all about “states rights”, until it no longer fits their narrow minded narrative.