By on July 25, 2019

While we’ve dinged the media for erroneously reporting that automakers were unilaterally “backing” California in the fuel-economy fracas that’s currently taking place within American politics, it appears four of them actually are starting to choose a side. However, this again requires a bunch of clarification. Despite not adhering fully to the state’s ideal emissions scenario, Ford Motor Co., BMW Group, Volkswagen Group, and Honda Motor Co. released a joint announcement stating they have reached a voluntary agreement with the state of California to adopt compromised vehicle emissions rules.

Since there’s nothing binding in the joint agreement and automakers make (and break) promises all the time, the deal is largely meaningless. Doubly so, since the fuel-economy rollbacks have yet to be finalized. But this does illustrate how a handful of manufacturers are willing to accommodate others in order to get a nationwide solution. It also shows a softening of California’s previously ironclad environmental stance, which is much more interesting.  (Read More…)

By on July 9, 2019

On Tuesday, 23 governors signed a joint statement urging the Trump administration to reconsider the proposed rollback of Obama-era fueling regulations. Led, unsurprisingly, by California Governor Gavin Newsom, the letter suggests a “common-sense approach” to national requirements with an emphasis on rising standards.

A minor update in the gas war to be certain — and yet annoyingly framed by a large portion of the media as a victory for California when the realities are far more complicated. To be frank, we’re getting pretty tired of these lopsided takes. This whole thing is a regulatory and political quagmire… on all sides.  (Read More…)

By on June 21, 2019

us-capitol, public domain

Capitol Hill was the scene of some high-school drama this week after representatives from the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) reportedly refused to sit at the same table while discussing fueling regulations with the U.S. House Energy and Commerce Committee.

As petty as this seems, it illustrates the overall situation rather well. White House officials terminated talks with California in February, citing an inability to progress the debate. Meanwhile, CARB has been claiming the Trump administration doesn’t want to hear its case and has instead sought to strip the state of its ability to self regulate in order to pass reforms that would freeze national emissions standards at 2020 levels though 2026.

Thursday’s congressional bickering helped paint a clearer picture of what the communications breakdown looked like.  (Read More…)

By on June 20, 2019

The United Auto Workers is spending Thursday telling Congress that the union opposes the Trump administration’s proposal to freeze fuel efficiency requirements at 2020 levels through 2026… sort of. While the UAW expressed moderate environmental concerns in the past, most of its opposition to the rollback has revolved around corporate investments into the industry. In fact, the union’s research arm called fuel economy the auto industry’s “future” in 2018.

This time around, the UAW seems to be singularly focused on business aspects. According to a prewritten testimony, UAW Legislative Director Josh Nassar intends to tell two subcommittees of the U.S. House Energy and Commerce Committee that the union is in line with automakers’ concerns about the proposal leading to “protracted litigation and uncertainty in the industry that will limit growth.” (Read More…)

By on June 12, 2019

On Tuesday, the House of Representatives Energy and Commerce Committee said it will schedule a hearing on June 20th regarding the Trump administration’s proposal to roll back automotive efficiency standards. The decision comes from Committee Chairman Frank Pallone, Jr. (D-NJ), Consumer Protection and Commerce Subcommittee Chair Jan Schakowsky (D-IL) and Environment and Climate Change Chairman Paul Tonko (D-NY) — all of whom are in clear opposition to the suggested plan.

The groups will hold a joint hearing to discuss Corporate Average Fuel Economy (CAFE) standards and carbon pollution regulations affecting light duty vehicles as they relate to the current administration’s plan to effectively freeze efficiency targets between 2020 to 2026.  (Read More…)

By on June 7, 2019

The automotive industry is in turmoil. There’s an industrywide push toward electrification that has yet to prove itself as truly profitable, volume seems to be tapering off in the developed world, and emissions regulations aimed at improving air quality are operating counter to existing consumer tastes. As a result, automakers are scrambling to find the best path forward.

In 2017, that path involved encouraging the new U.S. president to roll back Obama-era fuel economy mandates, thus providing some breathing room and staving off fines as automakers began to realize they wouldn’t be able to meet tightening targets. The administration listened, leading to a proposal that would effectively freeze mileage standards at about 37 miles per gallon — rather than the previously decided 54.5 mpg — by 2025.

However, California and a coalition of supportive states claim they won’t be going along for the ride. This group says it will maintain the old standards, regardless of what the White House says. The staredown has automakers worried; they’ve now banded together to issue a letter asking both sides to calm down and keep talking.  (Read More…)

By on March 6, 2019

The Trump administration has long been at odds with California and a coalition of supportive states that hope to block the rollback of Obama-era fueling regulations the current Environmental Protection Agency deems “unsustainable.” The EPA also says it’s inconsistent with consumer behavior. But automakers have behaved somewhat erratically on the matter, forcing the president to request (by proxy) that they make up their minds and pick a side before a final decision is made.

While industry leaders previously backed the more stringent regulatory framework set in place by the former president, they quickly converged on Washington after Trump assumed office in 2017, requesting a softening of Corporate Average Fuel Economy standards. After blowback from California and environmental activists, automakers took a more measured approach, publicly stating that they support green initiatives and reducing their own carbon footprint — and suggesting that a national deal be reached that pleases all parties.

Fence-sitting time might be over.
(Read More…)

By on October 29, 2018

General Motors Renaissance Center

General Motors appeared to endorse the Trump administration’s fuel economy rollback, at least to some degree. In a federal filing made public on Monday, the largest U.S. automaker said Obama-era rules that targeted fleetwide fuel efficiency in excess of 50 miles per gallon by 2025 were “not technologically feasible or economically practicable.”

Interesting, considering GM CEO Mary Barra recently called for for the adoption of a national zero-emission vehicle strategy. However, the document also had GM saying it was “troubled” that the current administration appears so keen to abandon federal incentives on electric vehicles after the 2021 model year.  (Read More…)

By on October 25, 2018

California and 18 other states plan to formally vent their grievances over the Trump administration’s proposal to freeze fuel economy standards at 2020 levels on Friday. The Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) have called for public comments on the matter, with the deadline taking place at the end of this week. Apparently, California wants its voice to be the last one heard.

“They are grossly derelict in not trying to move the dial forward in cleaning the air and the environment,” California’s attorney general Xavier Becerra said in a conference call with reporters on Wednesday. “The situation continues to get worse and requires action now, and not for us to stand pat.”  (Read More…)

By on October 5, 2018

California is considering a formal, public counter-proposal to the Trump administration’s proposed rollback of the existing fuel economy requirements for passenger vehicles. Gearing up for the launch, the state has requested that automakers present detailed information on their future products and explain why they’re seeking relief from fueling mandates they previously agreed to adhere to.

“They’ve never submitted to us any information that would back up those claims in any detail to help us craft a solution,” Mary Nichols, chair of the California Air Resources Board, (CARB), said in a Thursday interview with Bloomberg(Read More…)

By on October 5, 2018

electrify-america-ev-charging-station, Electrify America

Volkswagen’s court-mandated subsidiary, Electrify America, has announced its second investment of $200 million into the nation’s electric vehicle charging infrastructure, and not a moment too soon. Plug-in car sales in the United States have already surpassed last year’s record of nearly 200,000 deliveries, thanks to Tesla’s rollout of the Model 3, and we’ve still got three months left to go.

Of course, it wouldn’t really matter if EV sales tanked in 2018 because VW is legally obliged to do this. There could have been a single, lonesome plug-in sale this year and Electrify America would still have to spend the same amount — as per its parent company’s agreement with the U.S. government. This time around, the goal is to improve charging infrastructure between cities while not ignoring major metropolitan areas. Cycle 2 will also focus primarily on California for the next 30 months, which is probably for the best. The state accounts for over half the country’s yearly EV sales.  (Read More…)

By on July 25, 2018

fuel gauge vintage

Andrew Wheeler, the acting head of the Environmental Protection Agency, said the United States needs a single standard for fuel efficiency for cars and trucks on Tuesday. It’s a sentiment shared by Mary Nichols, head of California Air Resources Board, but it’s likely to put the two at odds. Wheeler said the pair shared that singular goal based off a meeting held last week, but California isn’t seeking the same benchmarks as the current administration.

The state objects to the EPA’s plan to weaken Obama-era efficiency targets, and is currently in the midst of a political and legal battle with the agency. However, Wheeler confirmed that, under his watch, the group would continue seeking a “50-state solution.”  (Read More…)

By on July 17, 2018

Following Andrew Wheeler’s appointment as acting head of the Environmental Protection Agency, he extended an invitation to the California Air Resources Board to discuss emission regulations — a matter which former EPA administrator Scott Pruitt seemed less inclined to discuss with the state.

Mary Nichols, chairman of the board, said Wheeler reached out to state officials and the pair agreed to hold a meeting in Washington. It’s a slight easing of tensions in the cold war between D.C. and Sacramento. (Read More…)

By on June 1, 2018

fuel gauge vintage

The Trump administration has enacted phase two of its plan to revise Obama-era rules designed to cut pollution from vehicle emissions. In a proposal sent to the White House Office of Management and Budget on Thursday, the Environmental Protection Agency announced its intention to rescind the California waiver that separates it from the federal standards the state uses to regulate greenhouse gas emissions from automobiles.

Since allowing California to set its own emission standards would effective split the country’s auto market, the EPA has been clear that its ideal solution would be to cut a deal with the Golden State. Agency head Scott Pruitt previously said California “shouldn’t and can’t dictate [fueling regulations] to the rest of the country,” but acted in a manner that suggested a compromised could be reached.

This was followed by a lawsuit filed by 17 U.S. states, along with the California governor’s office, California attorney general, and the California Air Resources Board (CARB), alleging that the EPA had “acted arbitrarily and capriciously” in its decision to roll back the previous administration’s decision. While the odds are good that the Trump administration wasn’t ever interested in bending to California’s more stringent pollution policies, this was likely the point of no return — squashing any hope for meaningful negotiations. (Read More…)

By on May 16, 2018

Despite pressuring Donald Trump to lower corporate fuel economy mandates since practically day one of his presidency, automakers are now urging caution. The U.S. Transportation Department has drafted a proposal that would freeze vehicle requirements at 2020 levels through 2026, the Environmental Protection Agency’s lead administrator made a public case for rolling back mileage targets, and the White House seems ready to help car companies lower the bar.

Automakers seem to have won, so why the change of heart? (Read More…)

Recent Comments

  • DeadWeight: Nissan is the highest rung up on the Japanese (partially European, also) red headed step child ladder of...
  • ToddAtlasF1: The only question is how much can they be making on a half-priced Land Cruiser?
  • DeadWeight: Nissan is the highest rung up on the Japanese (partially European, also) red headed step child of...
  • ToolGuy: “Ford – We Can’t Run Our Business. Can We Run Yours?”
  • geozinger: “Repurposing a box compares to building cars in a tent?” Why yes, they’re equally janky.

New Car Research

Get a Free Dealer Quote

Staff

  • Contributors

  • Timothy Cain, Canada
  • Matthew Guy, Canada
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Corey Lewis, United States
  • Mark Baruth, United States
  • Moderators

  • Adam Tonge, United States
  • Corey Lewis, United States