California, auto firms agree on emissions

WASHINGTON — Four of the world’s largest automakers have struck a deal with California to reduce auto emissions, siding with the state in its fight with President Donald Trump over one of his most consequential regulatory rollbacks.

In coming weeks, the Trump administration is expected to all but eliminate an Obama-era regulation designed to reduce vehicle emissions that contribute to global warming. California and 13 other states have vowed to keep enforcing the stricter rules, potentially splitting the United States auto market in two.

With automakers facing the prospect of having to build two lineups of vehicles, Ford Motor Co., Honda, Volkswagen of America and BMW opened secretive talks with California regulators in which the four won slightly less restrictive rules that they can apply to vehicles sold nationwide.

The agreement provides “much-needed regulatory certainty,” the companies said in a joint statement, while enabling them to “meet both federal and state requirements with a single national fleet, avoiding a patchwork of regulations.”

Under the agreement, the four automakers, which together make up about 30% of the U.S. auto market, would face slightly looser standard than under the original Obama rule: Instead of reaching an average 54.5 mpg by 2025, they would be required to hit about 51 mpg by 2026.

The Trump administration has said it plans to roll back the Obama-era standard to about 37 mpg.

The administration pushed back Thursday. U.S. Environmental Protection Agency spokesman Michael Abboud called the California agreement a “PR stunt.”

White House spokesman Judd Deere said, “The federal government, not a single state, should set this standard.”

The administration is expected to try to revoke California’s right to set its own auto emissions standards. The state has vowed to fight that effort all the way to the U.S. Supreme Court if necessary, and the four automakers, by siding with California, are in effect voting that they expect California to win that battle.

On Thursday, Gov. Gavin Newsom of California said he was “very confident” that more automakers would join the deal in coming days.

One auto executive familiar with the negotiations agreed that was likely. On Thursday, a wider group of automakers held a meeting to consider joining the pact, the executive said.

An executive at another large automaker said his company is considering joining the agreement because it includes meaningful concessions by California.