In July, a number of major automakers, including Ford and Volkswagen, reached an agreement with the California Air Resources Board to implement tougher fleetwide fuel economy standards by 2026, going against the Trump administration’s plan to freeze the regulations.
Now President Trump has taken aim at the automakers that joined the pact, calling the decision to side with California “politically correct,” in a tweet sent out Wednesday morning and suggesting they focus on making cars cheaper and safer instead.
“My proposal to the politically correct Automobile Companies would lower the average price of a car to consumers by more than $3000, while at the same time making the cars substantially safer,” Trump said in the tweet. “Engines would run smoother. Very little impact on the environment! Foolish executives!”
In siding with the California Air Resources Board over the fuel economy regulations, the four automakers (which also include BMW and Honda) agreed to increase the average fuel economy of their vehicle fleets by 3.7% per year from 2021 onward with the goal of eventually reaching a near-50 mpg average by 2026.
Trump’s more lax fuel economy laws, which would freeze the fleetwide emissions mandate after 2020, aim to keep vehicle prices down as they continue to rise. The average price of a new car in July of 2019 was just over $37,000, according to data obtained by The Detroit News.
The California fuel economy pact does not include Toyota or General Motors – two of the world’s largest automakers. Democrats in Washington have begun to pressure GM to take a side in the matter, however, saying they believe the Obama-era emissions regulations will save consumers money at the pump and help reduce pollution.
“As representatives of states that signed the Nation’s Clean Car Promise, we believe that General Motors joining this agreement would save consumers money, reduce emissions, and provide regulatory certainty to the auto industry,” a group of 30 U.S. senators wrote in a letter to GM CEO Mary Barra that was obtained by The Detroit News.
Automakers will be keen to see one, single fuel economy standard implemented nationwide, as trying to adhere to a split system would prove to be extremely costly and complicated. Some manufacturers also complained of the strict Obama-era regulations, however, and noted that trying to meet them may also prove to be expensive for both them and their customers.
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Source: The Detroit News
Comments
I’m not very political, but it’s pretty common knowledge that government regulations (worldwide) have been driving vehicle costs higher and higher. And the car companies must love it. What better excuse to keep raising prices than governments forcing you to use cutting edge tech? No wonder the average American can’t actually afford many new vehicles.
To be fair the automakers are having a problem with cost going up so fast as fewer can buy a new car. This is part of the reason GM has worked hard to grow the ATP as they expect the markets to decline in total sales.
The automakers know that Trump has either 1 or 5 years and who ever follows could reverse things again. Automakers need to look 10-20 years ahead. Making changes cost billions they just can’t afford to spend every time someone is in office.
Also they want yo grow the EV segment and these regulations will drive it. Their hope is EV product will come down in price and in the long run be cheaper to build when batter cost decline. Development cost should also decline as less testing with no emissions and less parts to make test and design. It is not just about saving the environment.
He has only one year left.
Don’t you believe it!
I read two comments (Big Papa, C8-R) and was really proud of you guys for the thoughtful, non-political assessments. I should have known it wouldn’t continue. Should I continue reading? Or was Mr. Ramirez’s clairvoyance all it took to end the pearls of wisdom?
Plus four more
you can add mercedes-benz to that list of manufacturers.
https://www.msn.com/en-us/news/technology/mercedes-benz-will-join-voluntary-california-emissions-rules-report-says/ar-AAG7TlJ
trump loves to drag everything/everyone into the gutter with him. nice to see some are taking the high road.
All of this discussion is regarding fuel economy standards in the USA vs California, but are we forgetting other countries have fuel economy and emissions standards too? What seems to make the most sense to me it’s reaching some sort of standard that coincides with EU and Asia rather than trying to go it alone and have suffering standards all over the glove. Now THATS what the Trump administration and California should be working towards… A single uniform goal so vehicles made in the USA can be exported and sold side by side with other manufacturers.
Bravo to Trump for talking sense into the eco-zealots running the car companies and making cars unaffordable.
Trump supports the regular working people, not the Silicon Valley types.
Ha! That’s a new one. Accusing any car company of having Eco-zealots at the helm is beyond ridiculous. The main reason why car companies (especially GM) are moving to electric is mostly for financial reasons. Ultimately, helps protect them in the long run from fluctuations in the oil & gas industry. Gas prices are low now (artificially low, some believe), so SUVs and Trucks are popular again, but all it takes is another war in the Middle East or a refinery or two in the US to shut down to some natural disaster, and it’s 2005-2009 gas prices all over again.
Trump’s attempt to roll back fuel economy standards is short sighted and will end up costing companies more in the long run.
Ya, putting all profits from overpriced Silverados into BEVs is a great idea when they make up such a small market share.
California can go pound salt. If the rest of the country was run like it, it would quickly become a third world country.
You mean the fifth largest economy in the world? Yeah, totally third world in California.
They can’t keep human feces off the streets in LA or San Francisco. Homelessness abounds, and there’s huge huge wealth disparity. Sounds pretty third world to me.
“….but all it takes is another war in the Middle East or a refinery or two in the US to shut down to some natural disaster, and it’s 2005-2009 gas prices all over again.”
And what did manufacturers do because of that? And what vehicles attracted more buyers? I’ll give you a hint. Manufacturers built more fuel efficient vehicles from Smart cars to Class 8 semis. Consumers put fuel economy higher on their priority list and chose the most economical. Let the free market work!
Those fuel-efficient vehicles are now the Bolt, Malibu, Trax, Encore, Prius, Corolla, RAV4, Clarity, Civic, CRV, etc….
And what happens when the power companies figure this out and start charging astronomical rates to fast charge your electric vehicle? That could easily put another wrench into EV sales thus reversing what you just said
Who cares, were you actually planning on buying a so-called less safe Toyota for $3000 more than the competition? If Trump is right (spoiler alert, he might not be) then these automakers won’t have any US sales and will leave the Pact…
What’s the limit though? It’s not like Trump signed us up for 20 mpg or some metric like that – in fact, I think the difference is something between an ultimate target of 37 mpg (Trump) and 50 mpg (Cali). Trump’s might be lower, but it’s still pretty high – higher than what we have today, which is already the most efficient fleet we’ve ever had on a per-model basis.
Folks are acting like Trump signed us up for 1972 style gas-guzzlers, that’s just not the case.
California don’t even like GM and I think Barra knows that hence the non-committal, plus I bet those 30 senators all drive Japanese/European. The biggest surprise is Toyota, can plasticworld send a letter to Tokyo since Calis worship them?…
Trump’s regs would actually freeze the limit at 42 MPG which is still quite good, I agree, and definitely better than what we have now. The 42 MPG limit would only stall out until 2026, at which point they would likely implement stricter ones. It does not seem that bad to me.
I think the ONLY thing Trump is trying to push is continued growth in the use of fossil fuels. The science that identifies the type of pollution and the causes of those pollutants is something that Trump, our current President, denies. Also vehicle safety improvements are made by historical data, engineering trials, and scientific data relative to materials, loads, g-forces, etc.; yup science again!!
Bingo. Someone who actually gets what is really going on instead of endlessly bashing Trump
BINGO….the country is 22.5 trillion in debt and growing. Plan on paying that debt back genius????
Hey Donny
Won’t you please come to Chicago. I’ll take you out to any one of our famous steak houses. Just so I could watch the chef kill you, when you try and put ketchup on a steak.
Nobody is buying this EV crap. And thats where all the manufacturers are headed. California is the “trend setter” for this kind of political garbage. And unfortunately automakers aren’t worried about their customer base anymore its all about politics. Let us tell you whats good for you….. Let us tell you what you need…. Yet consumers are buying trucks and suvs all day long. Manufacturers invested so heavily in EV’s they know they’re going to lose their A. So they push it off on us.
Gmman99 (what a shameful name!) , you are that “nobody”!
Just another indication of how much power Big Oil has in Politics (Both Sides)
This is why the US unfortunately stands to fall behind Europe and China in the EV Market.
If we “fall behind” in the EV market it will probably be a good thing. It will mean that we have started to take a hard look at the scare lobby and its pronouncements and see that they are false and largely driven by the progressive imperative to control you, me, and everything.
Please define “Big Oil”. The oil industry is far, far more decentralized than, for example, the auto industry, or the banking industry, or retail, or…, both domestically and worldwide. This is especially true now that the OPEC cabal has been diminished in the marketplace by the ever-so-diversified US and Canadian oil production.
Almost 50% of Oil is used in the Transportation sector. I think that is definition enough.
Look to see just how much Big Oil gets in Governmental subsidies. It is astronomical.
I have never stated that a switch to EV’s is or will be easy. I have always stated that GM is doing the right thing trying to go All In. That is the future. GM cannot afford to lose shares in the market in China.
If China wants EV’s, guess what ALL Auto Makers will do.
Why does everyone here think Elon Musk was the only Auto Maker to get a free standing complete Company owned factory in China?
China wants to be the complete leader in the EV field and on the renewable energy market. Our Government as I stated above, both sides, are dragging their feet as they try to remain relevant with Big Oil campaign funds. China doesn’t work like that. They are a Communist country unfortunately and for the World Auto Makers if they want to continue to sell in that market, they will have to follow along. It really is just that simple.
I said it back in 2013 that any Auto Maker that takes Tesla lightly will be left Far behind. People that get a chance to drive a Tesla will want a Tesla. If you haven’t driven one, you should try it out. They have the magic sauce if you will. Better Range than anyone else on the market. It is not even close. And to top it off, the absolute best EV Performance in their class.
GM got a late start but at least they finally see what the Future will will be. For better or worse.
“Big Oil” in the US are Standard Oil company offshoots ” Exxon, Chevron..” are still pumping the oil out the sands and fracking in the US, and you have to go to them if you still want oil pumping supplies and refinement.
Keep fiddling’ idiots – you won’t be driving much anymore if you destroy the planet. Thankfully California is attempting to preserve and protect the environment – somebody needs to lead!
They should start by cleaning up the human fecal matter that litters San Fran. They are such saints in California!
It’s not up to you plastic people to lead the U.S. either
Wonder why GM and Toyota haven’t signed with California . They sold more Hybrid vehicles than all the other Automakers who signed up with California, so these guys obviously know a thing or 2 about fuel efficient vehicles which the others do not. Volt and Prius are the only hybrids I see in numbers nationwide.
Completely my opinion or educated guess but I feel like GM is desperately trying best they can to play both ends of the game here. They know the Future is pure EV’s but they also know that the most economical way to get there is by selling Huge Gas Guzzling Trucks and SUV’s that bring in the Huge profits they need. I kind of see their dilemma here.
Will be interesting to see what the Future GM will be like in 10/15 year.
This idiotic POTUS (or POS) forgets that the nation’s name is “The United States”, not “Trumpland”! If the Constitution is based on States unifying to make a nation, they can also unify to save the economy and the environment,. The POTUS is worried that he will get less campaign money from the oil magnates!