Donald Trump (File photo)
President Trump (White House photo)
If you're an environmentalist, President Donald Trump's visit on Wednesday near the American Center for Mobility at Willow Run in Ypsilanti Township is nothing to cheer about. If you're an automaker looking to make more profits, well, that's a different story.
Before hundreds of autoworkers from General Motors Co., Fiat Chrysler Automobiles and Ford Motor Co. , Trump is expected to announce his administration's plans to review new, tougher fuel-economy standards, reports Chris Woodyard of USA Today.
Woodyard reports:
If the review eventually results in the standards being lowered, automakers potentially wouldn't have to make as many cars with advanced carbon emission-cutting technology like hybrids, electrics and hydrogen fuel cells in order to hit the minimums. Though cleaner, they are more complicated to make, can be less profitable and generally carry higher prices.
Environmentalists say Trump's decision to open the review is the first step in cutting back on tougher corporate average fuel economy, or CAFE, regulations due to cover cars in the 2022 to 2025 model years. Trump is expected to announce the review in a speech near Detroit, the heart of the nation's auto industry....
But with automakers required to be selling cars and trucks that collectively average 54.5 miles per gallon by 2025, regulators said in July that automakers were likely to fall short, to 46.3 mpg. The issue wasn't technology, but rather consumer demand. With gasoline cheap and big vehicles back in vogue, it's harder to make the goal. The smaller, more efficient vehicles that can lead automakers to higher corporate fuel economy levels aren't as popular anymore. "Consumers aren't buying those vehicles. That's a big problem," said the unnamed official, and could require changes in the regulations to match real-world demand.
U.S. Rep. Debbie Dingell issued a statement Wednesday morning on Trump's visit:
“It is critical that the United States continue to invest in mobility and strong, workable fuel economy standards. In 2011, President Obama led an effort with automakers, EPA, NHTSA and California to establish an ambitious program to improve fuel economy standards and reduce greenhouse gas emissions. I strongly supported this effort. It was the right thing to do for the environment and in making sure middle class jobs were protected. As a result, automakers have made great strides and remain committed.
“The anticipated announcement today does not roll back these standards. This is important. It allows for a robust midterm evaluation that was agreed to by all participants under President Obama. Everyone involved needs certainty – from automakers building more fuel-efficient vehicles to the companies developing infrastructure to support them. As the process moves forward, it is important for all stakeholders to ensure there are strong, workable standards in place that achieve the goals of the original agreement while keeping everyone together on one set of standards. That is my personal goal – to keep all parties at the table and working together to decrease emissions, reduce oil consumption, save consumers dollars at the pump and create jobs.
