The U.S. divisions of 18 automakers are urging President Donald Trump to revisit recently finalized fuel economy standards. The group has reportedly sent a letter to President Trump to express their desire for him to “reset” the review of the new fuel economy standards.
The letter, viewed by Reuters, is signed by the chief executives of General Motors, Ford Motor Company, Fiat Chrysler Automobiles, along with the top North American executives at Toyota Motor Corporation., Volkswagen AG, Honda, Hyundai, Nissan. and others. The letter expresses the automakers’ concern that the new fuel economy regulations will negatively impact jobs in the U.S.
Bringing up job loss is likely an attempt to get President Trump’s attention, given job creation is a primary theme of his Administration. The letter reportedly cites job losses of up to one million, a figure also thrown out by Ford CEO Mark Fields at a recent meeting with President Trump at the White House. The one million job loss figure is contested and isn’t well researched.
All of this is stemming from the finalization of new fuel economy standards that occurred on January 13th by President Obama’s EPA. The EPA originally had until April 2018 to review the new standards, which were announced in 2012 by the Obama Administration. In an attempt to secure some of his legacy on climate change, President Obama’s EPA pushed up the finalization of the new rules to this January.
The new rules call for fleet-wide fuel economy averages of 54.5 mpg by 2025. Many automakers have expressed concern that the benchmarks are not going to be easy to achieve.
Despite nearly all automakers being on the same page with the new rules, advocates say the rules are not going to have that much of an impact on the industry. They also claim and point out that consumers are already benefiting by paying for less gas.
Thus far the Trump Administration has not replied to the automakers’ letter.