This archive report was first published on 26 July 2019.
Published on July 26, 2019, a group of automakers held a meeting to consider joining a pact with California to reduce emissions and meet fuel economy standards. The meeting was held on Thursday morning, but there were no immediate sign-ons from the automakers.
Initially, Ford, Honda, BMW, and Volkswagen had decided to keep the group small, citing concerns that a wider group would be difficult to bring together and might lead to the deal collapsing. However, an executive at another large automaker revealed that his company was considering joining the agreement due to the meaningful concessions made by California.
The executive, who wished to remain anonymous, stated that the Obama-era fuel economy standards were challenging for the industry to meet, particularly with car buyers increasingly preferring sport utility vehicles and pickup trucks that have lower fuel economy than sedans.
Margo Oge, a former senior E.P.A. official, expressed her support for the deal, saying, “I have been calling all these companies and telling them to cut a deal with California. I think G.M. and Toyota will also have the courage to sign on.”
Despite the deal, Trump administration officials maintained that it would not impact their plans to introduce a new federal rule allowing more tailpipe pollution. In an email, Michael Abboud, an E.P.A. spokesman, stated, “This voluntary framework is a PR stunt that does nothing to further the one national standard that will provide certainty and relief for American consumers.”
The new agreement would grant automakers more flexibility in meeting fuel economy standards through alternative means, such as earning credits for fuel-saving technology.
However, environmental groups criticized the deal, citing concerns over the slower pace and expanded loopholes awarded to the automakers. Daniel Becker, director of the Safe Climate Campaign at the Center for Auto Safety, stated, “That means more pollution, less savings at the pump and a bad precedent for future standards.”
