On eve of New York auto show, car makers face emissions fight, cooling market
Executives will push more-profitable vehicles while trying to impress investors with progressive technology, even as they lobby against speedier adoption
Auto executives descend on New York’s annual auto show this week amid cooling demand for new cars and trucks. But getting buyers to open their wallets could be a breeze compared with the emissions battle the executives face in the Empire State.
New York is one of a dozen states that follow California’s vehicle-emissions standards, which are set separately from Environmental Protection Agency regulations. The states make up roughly 40% of the U.S. car market.
New York and California officials bristled when the Trump administration, after weeks of industry lobbying, reopened a review of stringent federal emissions standards that are currently aligned with their rules. They have criticized auto makers for running to the White House for relief, and suggested they will wage legal battles to keep their regulations strict.
“The Trump administration’s attempts to roll back readily achievable vehicle emission standards is a dangerous attack on the decades of progress we’ve made in cleaning up our air,” said New York Attorney General Eric Schneiderman in a statement. States have clear rights to adopt stricter pollution standards and New York “won’t hesitate to fight back” against efforts to undermine them, he said.
Auto makers want to relax federal rules, saying that low gasoline prices are pushing consumers toward fuel-thirsty pickup trucks and sport-utility vehicles that now account for 60% of U.S. sales. That makes it harder to sell electric cars and other more-expensive cleaner technologies that help car makers meet gasmileage standards, they say.
Car companies toe a careful line at auto shows: They are trying to woo buyers while also impressing regulators or investors who want to see progressive technology, even as manufacturers lobby against government rules meant to speed their adoption. Once primarily a showcase for fresh sheet metal, they have increasingly become displays for futuristic rides, such as self-driving cars years away from hitting dealerships.
Among this year’s moonshots: Honda Motor Co. is showcasing its Clarity electric car and BMW AG’s iPerformance plug-in hybrid vehicle lineup will also be displayed.
New York’s exposition at the sprawling Javits Center is the first major U.S. car show since the Trump administration reopened a review of federal targets that require auto makers sell vehicles SPECIAL reliant on petroleum.”
At a March hearing, she criticized industry lobbyists in Washington. “What were you thinking when you threw yourself upon the mercy of the Trump administration to try and solve your problems?” she said.
Should California retrench in the reopened review of the U.S. regulations, the EPA could weigh rescinding its waiver under the federal Clean Air Act to stop the state from enforcing its own rules that are followed elsewhere.
But that would be an unprecedented move likely to spark litigation that could consume the rest of Mr. Trump’s term— and sow uncertainty for car companies. The EPA had no immediate comment.
California would face some uncertainty in any court battle resulting from the EPA deciding to rescind the state’s waiver. State lawmakers enlisted former Obama administration Attorney General Eric Holder to fight possible legal battles. While against watering down standards, Daniel Sperling, a member of California’s Air Resources Board, said during the March hearing “some changes should be made.” Credits auto makers receive for electric cars could be extended beyond a 2021 expiration, for example.
Auto makers also want the EPA’s regulations better aligned with separate fuel-economy rules set by the National Highway Traffic Safety Administration. The agency in February released preliminary data showing auto makers falling short of mileage requirements.
The EPA and California officials have found auto makers in recent years beating targets, with costs for technologies needed to meet them declining. Auto makers can meet future standards with 93% of vehicles featuring gas-powered engines, while electric cars and hybrids maintain small market shares, according to California regulators.