U.S. open to California mpg talks
Keeping one auto fuel-economy standard said to be goal
WASHINGTON — Addressing a key concern for manufacturers, President Donald Trump instructed his administration to explore negotiations with California on achieving a single fuel-economy standard for the nation during a meeting with auto industry executives Friday.
The president met with top auto executives to discuss the standards and assigned Transportation Secretary Elaine Chao and Environmental Protection Agency Administrator Scott Pruitt to handle the talks with California officials, according to two people briefed on the meeting. The people spoke on condition of anonymity to describe the private discussions.
The auto industry wants to relax the federal fueleconomy standards, but not so much that they provoke a legal fight with California, which has power to impose its own stricter tailpipe pollution limits. Such a fight could create two different mileage standards in the U.S., forcing automakers to engineer and produce two versions of each of their vehicle models and driving up costs.
Two auto industry trade groups confirmed in a statement that Trump was willing to talk with California, but they provided no specifics. The Alliance for Automotive Manufacturers and Global Automakers said they appreciated Trump’s “openness to a discussion with California on an expedited basis.”
During the meeting, one executive brought up how it would be better for the industry to have one standard instead of two, and Trump instructed Pruitt and Chao to go to California for talks, the people said.
White House press secretary Sarah Huckabee Sanders said the president and the automakers discussed “how best to move forward” on the fueleconomy standards.
The EPA under Trump has proposed freezing the standards at 2020 levels for the next five years, according to a draft of the proposal obtained by Sen. Tom Carper, D-Del.
Under of to per new average gallon the vehicles in proposal, roughly real-world would 30 the miles have driving, fleet through and that at least wouldn’t 2025. change
The EPA under Obama proposed standards that gradually would become tougher during that period, rising to 36 mpg in 2025, 10 mpg higher than the current requirement. California and automakers agreed to the rules in 2012, setting a single national fuel economy standard.
If California splits from the federal rule under consideration by the Trump administration, it likely would be joined by 12 states that follow its standards. Together they make up about 40 percent of U.S. new-vehicle sales.
Any big change by Trump likely would bring lawsuits from environmental groups as well as California. Leaks about the Trump EPA plan already have provoked a suit from California and 16 other states.
In testimony to Congress this month, Mitch Bainwol, chief executive officer of the
manufacturers’ the administration requirements 2025 trade and that includes group increases from alliance, to urged California find 2022 mileage a said the solution to to nightmare keep “The one resulting would national regulatory ultimately standard. harm vehicle consumers costs and by increasing restricting consumer choice,” Bainwol said.
Trump said during the meeting in the Roosevelt Room of the White House that he wanted to discuss the “manufacturing of millions of more cars within the United States, for Michigan, for Ohio, for Pennsylvania” and states such as South Carolina and North Carolina.
As the auto executives introduced themselves, the president joked to Sergio Marchionne, CEO of Fiat Chrysler, that “right now he’s my favorite man in the
room” plant Other from because Mexico executives he’s to moving Michigan. at the a meeting were General Motors CEO Mary Barra, Ford CEO Jim Hackett, and Bob Carter, executive vice president of North America for Toyota.
Trump won the presidency in 2016 in part on his strength in the industrial Midwest states of Michigan and Ohio, which employ thousands of people in auto and parts manufacturing. The meeting came as the administration has been holding extensive negotiations with Mexico and Canada on a rewrite of the North American Free Trade Agreement, which the auto industry is watching warily.
Asked if the deal might adversely affect the industry, Trump said, “NAFTA has been a terrible deal, we’re renegotiating it now, we’ll see what happens.”
“Mexico and Canada, look, they don’t like to lose the golden goose. But I’m representing the United States. I’m not representing Mexico and I’m not representing Canada,” he said. “We’ll see if we can make it reasonable.”
Automakers have been lobbying the Trump administration
economy buying low standard years SUVs, of the U.S. When they’ll mileage end them gas ago, made bigger new-vehicle prices. of because the to requirements, cars, have was last up than revisit single vehicles year, which just trouble adopted trucks people under however, sales. the national get due reaching fuel saying better and half are six By to trucks two-thirds groups in the Some and standards, oppose SUVs environmental of all any were sales. saying reduction close that to the buying ones for habits. changes developed Reducing in consumer in 2012 the allow standards, pollution they say, and will raise increase gasoline Requirements prices at the now pump. are lower such as for trucks bigger and SUVs, vehicles said Luke Tonachel, director of clean vehicles for the Natural Resources Defense Council. “The standards automatically adjust to the sales mix of vehicles,” he said.
Environmental groups also say the industry marketed trucks and SUVs to the public because they make bring higher profits than cars.