Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Trump thanks GM, Fiat Chrysler and Toyota on California emissions fight

Published 10/30/2019, 02:58 PM
Updated 10/30/2019, 02:58 PM
© Reuters. FILE PHOTO: U.S. President Trump attends International Association of Chiefs of Police annual conference and expo in Chicago

By David Shepardson

WASHINGTON (Reuters) - U.S. President Donald Trump on Wednesday thanked General Motors Co (N:GM), Toyota Motor Corp (T:7203), Fiat Chrysler Automobiles NV (MI:FCHA) and other major automakers for "standing with" his efforts to bar California from setting its own vehicle emissions rules for cars and trucks.

"California has treated the Auto Industry very poorly for many years, harming Workers and Consumers," Trump wrote on Twitter.

The automakers' decision to side with the Trump administration follows legal challenges by California and 22 states and environmental groups in September.

Those challenges aim to undo the administration's determination that federal law bars California from setting its own rigorous tailpipe emission standards and zero-emission vehicle mandates.

The decision to back Trump, disclosed in a filing with a U.S. appeals court late on Monday, has prompted a furious backlash from Democrats and environmentalists.

It also poses a risk for the automakers if a Democrat wins the White House in November 2020 and reverses Trump’s actions, allowing California to set its own rules and revert to the tougher national emissions standards of the Obama era.

The automakers did not immediately comment.

California Air Resource Board chief Mary Nichols on Tuesday criticized automakers after noting they tried a similar tactic previously. "GM, Toyota and Chrysler are repeating the same legal arguments they lost back in 2004, hoping for a different result. Definition of insanity?" she wrote on Twitter.

U.S. House Energy and Commerce Committee Chairman Frank Pallone, a Democrat, said on Twitter automakers "caving" to Trump's "intimidation campaign won't save these automakers" and added the decision to align with Trump's "anti-climate agenda for the sake of a little short-term profit and reprieve from @POTUS’ Twitter tirades will do long-term damage, both to the automotive industry and to our country."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Other automakers, such as Ford Motor Co (N:F), Honda Motor Co (T:7267) and Volkswagen AG (DE:VOWG_p), which announced a voluntary deal with California in July on emissions rules, are not joining the bid to intervene on the administration's side.

The group backing Trump also includes Mazda Motor Corp (T:7261), Nissan Motor Co (T:7201), Kia Motors Corp (KS:000270) and Subaru Co (T:9778).

In August 2018, the Trump administration proposed freezing fuel efficiency requirements at 2020 levels through 2026, reversing planned 5% annual increases.

The Obama-era rules called for a fleetwide fuel-efficiency average of 46.7 miles per gallon by 2026 compared with 37 mpg by 2026 under the Trump administration’s preferred option. The final requirements are expected to be ready by the end of the year.

Latest comments

Calif is way out of wack with reality. We have the highest taxes, highest fuel costs, highest housing costs, 25% of all welfare recipents in the nation, highest illegal immigrent population. I could go on and on. Its time to reset priorities in this state and get on board with reality and fairness for its citizens. The national emmissions guidelines are good enough.
I will not buy a car not meeting Ca requirements. the rules will soon swing back to reality once Trump is a bad history lesson
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.