Auto makers seek review of fuel efficiency mandate

(Auto News)-Donald Trump has been President elect for just a few days, but the auto industry has already started considering how his intention to reduce regulation could benefit carmakers. A lobbying group called the Alliance of Automobile Manufacturers has sent a letter to the President elect’s transition team asking it to reconsider previously proposed fuel economy and greenhouse emissions rules for 2025.
The alliance argues that the increasing push for cleaner, more efficient vehicles leads to increasing costs for consumers, and reforming the system would allegedly help buyers. The group wants a re-evaluation of all automotive regulations since September 1. “Well-meaning regulatory action risks increasing compliance costs to the point that additional safety and fuel-efficiency technologies put new vehicles out of financial reach of the average new car purchaser,” the Alliance’s letter said, according to Automotive News.
Environmental regulators already set the compliance levels through 2021, and the government is now evaluating the situation from 2022 through 2025 that could lead to a 50-mile-per-gallon fleet average. If the Alliance’s plan succeeds then any further changes might not happen.
In addition, the group wants unified rules about the zero emissions vehicle mandate. California spearheads the plan for 15 percent of new car deliveries to produce no emissions, but nine other states are also part of it. “The Administration should engage as appropriate to help address these ZEV issues — especially to help avoid the creation of a patchwork of requirements that will frustrate the overall intent of the ‘One National Program,’” the alliance wrote, according to Automotive News.
The Alliance of Automobile Manufacturers represents 12 automakers, including BMW Group, Fiat Chrysler Automobiles, Ford Motor Company, General Motors, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi Motors, Porsche, Toyota, Volkswagen Group of America, and Volvo Cars USA.
President-elect Trump isn’t the strongest ally of the auto industry. While he’s against regulation, he also threatens high tarrifs on American carmakers that import vehicles from Mexico. It could spell trouble for them.