The Mercury News

GM sides With Trump in emissions battle, splitting the auto industry

Decision pits some carmakers against Honda and Ford

- By Hiroko Tabuchi

General Motors, Fiat Chrysler, Toyota and other auto giants said they were intervenin­g on the side of the Trump administra­tion Monday in an escalating battle with California over fuel economy standards for automobile­s.

Their decision pits them squarely against some of their peers, including Honda and Ford, who this year reached a deal to follow California’s stricter rules.

The automakers that are siding with the Trump administra­tion, led by industry group Global Automakers, say that the federal government, not California, has the ultimate authority to set fuel economy standards for passenger cars and trucks.

It represents the latest dramatic twist in one of the Trump administra­tion’s most consequent­ial rollbacks of regulation­s designed to fight climate change.

The administra­tion has proposed a major weakening of federal auto emissions standards set during the Obama administra­tion, prompting California to declare that it will go its own course and continue to enforce the earlier, stricter standards. Under the Clean Air Act, California has the authority to write its own clean air rules — and California has now taken the Trump administra­tion to court to defend its authority to set its own emissions rules.

Several other states have pledged to follow California’s lead, meaning that the action has the potential to split the U.S. auto market into two markets, each selling vehicles with different sets of emissions standards.

In July, Honda, Ford, Volkswagen and BMW sided with California in the battle, striking a deal with the state to follow more stringent standards close to the original Obama-era rules. That surprise agreement, which prompted an angry response from President Donald Trump, would allow those automakers to meet both federal and state requiremen­ts with a single national fleet, avoiding a patchwork of regulation­s.

The automakers that intervened in the legal battle Monday are instead siding with the Trump administra­tion, though John Bozzella, chief executive of the Associatio­n of Global Automakers, made clear the group still hoped for a middle ground.

“We can still reach an agreement that is supported by all the parties,” Bozzella said. Still, he said that industry had “historical­ly taken the position that fuel economy is the sole purview of the federal government — though it doesn’t have to come to that.”

Newspapers in English

Newspapers from United States