Arkansas Democrat-Gazette

U.S. open to California mpg talks

Keeping one auto fuel-economy standard said to be goal

- TOM KRISHER AND KEN THOMAS

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.

 ?? AP/EVAN VUCCI ?? Meeting Friday with auto executives, President Donald Trump discusses fuel-economy standards with (from left) Scott Pruitt of the Environmen­tal Protection Agency, Ford chief executive James Hackett and economic adviser Larry Kudlow.
AP/EVAN VUCCI Meeting Friday with auto executives, President Donald Trump discusses fuel-economy standards with (from left) Scott Pruitt of the Environmen­tal Protection Agency, Ford chief executive James Hackett and economic adviser Larry Kudlow.

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