Reuters reported that the Trump administration will not introduce amendments and relaxation of fuel economy regulations this year, but will go live next year. In a question-and-answer session with Reuters, Mr. Trump said any measures were failing because of the california government’s challenge to the new regulations. The Trump administration and California had tried to reach a mutually satisfactory deal, but the talks failed.
California has now filed a legal challenge to protect its ability to enact stricter emissions regulations and meet zero-emission vehicle requirements. The Trump administration, on the other hand, argues that the easing and decline in fuel economy will help lower car prices and make roads safer, and that automakers will spend more than $300 billion on government regulation spending after the new rules are used.
The Trump administration is trying to lower the Obama-era emissions standards, which were formally enacted in 2012 and require automakers to double the average fuel economy of new cars and light trucks to 54.5 miles per gallon by 2025. The White House’s plan to freeze fuel economy standards at around 37 miles per gallon is seen by Mr. Trump as a way for the auto industry to lower new car prices while easing regulatory burdens.
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The California agreement stands in contrast to the Trump administration’s approach. In July, Volkswagen, Ford, Honda and BMW agreed with California regulators to increase the ignition efficiency of light vehicles each year until 2026. To that end, the Trump administration proposes to eliminate the long-standing legal authority granted to California to enforce its own emissions standards.
California and 13 other states plan to implement more stringent current emissions standards. In addition, they may sue the Trump administration over new federal emissions rules, which automakers hope will avoid. Last month, senior advisers to President Trump reportedly met with GM, Toyota and FCA executives at the White House to urge them to support the Trump administration’s proposal. All three companies declined to comment on the details of the meeting. However, FCA chief executive Michael McMing-ho said recently that the company would remain focused on the California agreement.