OK, it almost NEVER happens that industry comes together and asks the government for tougher regulations. But thanks to President Trump that just happened. Last week, 17 of the biggest auto companies sent President Trump a letter warning that if he goes ahead with this plan to roll back the fuel efficiency standards set by the Obama Administration, it “threatens to cut their profits and produce “untenable” instability in a crucial manufacturing sector.”
The Threat: The Trump Administration has been working on a new rule that would essentially freeze fleet-wide average mileage standards at about 37 miles per gallon for cars, instead of the Obama “Clean Car” rule’s target of 54.5 miles per gallon by 2025.
Why This Matters: The federal government had been negotiating with California over these standards, from which the state can lawfully deviate to make them tougher. The worst scenario of all is if California has one set of fuel efficiency standards and the rest of the country has a different one. The car companies also sent a letter to the Governor of California asking that he meet the Trump Administration halfway, but there is no indication that Trump would agree to a compromise. The only thing that seems certain now is litigation.