By on June 12, 2019

On Tuesday, the House of Representatives Energy and Commerce Committee said it will schedule a hearing on June 20th regarding the Trump administration’s proposal to roll back automotive efficiency standards. The decision comes from Committee Chairman Frank Pallone, Jr. (D-NJ), Consumer Protection and Commerce Subcommittee Chair Jan Schakowsky (D-IL) and Environment and Climate Change Chairman Paul Tonko (D-NY) — all of whom are in clear opposition to the suggested plan.

The groups will hold a joint hearing to discuss Corporate Average Fuel Economy (CAFE) standards and carbon pollution regulations affecting light duty vehicles as they relate to the current administration’s plan to effectively freeze efficiency targets between 2020 to 2026.  (Find Out…)

By on June 7, 2019

The automotive industry is in turmoil. There’s an industrywide push toward electrification that has yet to prove itself as truly profitable, volume seems to be tapering off in the developed world, and emissions regulations aimed at improving air quality are operating counter to existing consumer tastes. As a result, automakers are scrambling to find the best path forward.

In 2017, that path involved encouraging the new U.S. president to roll back Obama-era fuel economy mandates, thus providing some breathing room and staving off fines as automakers began to realize they wouldn’t be able to meet tightening targets. The administration listened, leading to a proposal that would effectively freeze mileage standards at about 37 miles per gallon — rather than the previously decided 54.5 mpg — by 2025.

However, California and a coalition of supportive states claim they won’t be going along for the ride. This group says it will maintain the old standards, regardless of what the White House says. The staredown has automakers worried; they’ve now banded together to issue a letter asking both sides to calm down and keep talking.  (Find Out…)

By on June 5, 2019

General Motors and Fiat Chrysler Automobiles have reportedly reached an agreement to purchase federal greenhouse gas credits from Tesla. While it’s common knowledge that the electric carmaker has raked in revenue by selling credits for years, disclosures with the State of Delaware help paint a clearer picture.

Apparently, GM filed to buy credits from Tesla earlier this year while FCA bought them on several occasions in 2016, 2018, and again earlier this year. Considering FCA’s American lineup, we’re not exactly quivering with disbelief. CEO Mike Manley could show up at a press conference, light a pool of gasoline on fire, and suggest it was Dodge’s new corporate model before we’d raise an eyebrow.

As unsurprising as FCA’s inability to adhere to present-day pollution mandates happens to be, there is a story here. The rising demand for greenhouse gas credits is changing the industry in some rather interesting ways.  (Find Out…)

By on March 7, 2019

The Environmental Protection Agency released its annual assessment of new vehicles yesterday, and it was filled with good news. On average, fuel economy continues to improve. Cars are not getting heavier, horsepower keeps going up, and every major manufacturer managed was in compliance with greenhouse gas standards through the 2017 model year. However, the EPA also said it’s concerned that manufacturers frequently tap into stored-up regulatory credits to make this possible.

“Most large manufacturers used banked credits, along with technology improvements, to maintain compliance in model year 2017. Three large manufacturers achieved compliance based on the emission performance of their vehicles, without utilizing additional banked credits,” the agency explained.

The ability to bank credits by over-complying in a given year is seen by some environmental groups as a way for corporations to shirk their responsibility to the planet. But EPA Administrator Andrew Wheeler’s concerns regarding the system rest elsewhere.  (Find Out…)

By on March 6, 2019

The Trump administration has long been at odds with California and a coalition of supportive states that hope to block the rollback of Obama-era fueling regulations the current Environmental Protection Agency deems “unsustainable.” The EPA also says it’s inconsistent with consumer behavior. But automakers have behaved somewhat erratically on the matter, forcing the president to request (by proxy) that they make up their minds and pick a side before a final decision is made.

While industry leaders previously backed the more stringent regulatory framework set in place by the former president, they quickly converged on Washington after Trump assumed office in 2017, requesting a softening of Corporate Average Fuel Economy standards. After blowback from California and environmental activists, automakers took a more measured approach, publicly stating that they support green initiatives and reducing their own carbon footprint — and suggesting that a national deal be reached that pleases all parties.

Fence-sitting time might be over.
(Find Out…)

By on February 11, 2019

Fiat Chrysler Automobiles paid $77 million in U.S. civil penalties late last year due to its failure to adhere to 2016 model year fuel economy requirements. In December, the National Highway Traffic Safety Administration (NHTSA) issued a report claiming the industry faced millions in fines from 2016 and that one manufacturer was expected to pay significant civil penalties.

You can probably guess which one. But FCA is by no means the only automaker affected by stringent fuel rulings. (Find Out…)

By on January 10, 2019

President Donald Trump nominated Andrew Wheeler as administrator of the Environmental Protection Agency on Wednesday, setting him up to permanently fill a position he’s already occupied since July.

Trump praised Wheeler in November his “fantastic job” as acting administrator of the EPA following the July 2018 resignation of the agency’s former scandal-ridden head, Scott Pruitt. This month, the president submitted Wheeler’s formal nomination to the Senate. There’s still a ways to go before the ex-lobbyist’s confirmation, though, as the Senate will no doubt be critical of his relatively recent ties to the coal industry. (Find Out…)

By on October 29, 2018

General Motors appeared to endorse the Trump administration’s fuel economy rollback, at least to some degree. In a federal filing made public on Monday, the largest U.S. automaker said Obama-era rules that targeted fleetwide fuel efficiency in excess of 50 miles per gallon by 2025 were “not technologically feasible or economically practicable.”

Interesting, considering GM CEO Mary Barra recently called for for the adoption of a national zero-emission vehicle strategy. However, the document also had GM saying it was “troubled” that the current administration appears so keen to abandon federal incentives on electric vehicles after the 2021 model year.  (Find Out…)

By on October 25, 2018

California and 18 other states plan to formally vent their grievances over the Trump administration’s proposal to freeze fuel economy standards at 2020 levels on Friday. The Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) have called for public comments on the matter, with the deadline taking place at the end of this week. Apparently, California wants its voice to be the last one heard.

“They are grossly derelict in not trying to move the dial forward in cleaning the air and the environment,” California’s attorney general Xavier Becerra said in a conference call with reporters on Wednesday. “The situation continues to get worse and requires action now, and not for us to stand pat.”  (Find Out…)

By on October 5, 2018

California is considering a formal, public counter-proposal to the Trump administration’s proposed rollback of the existing fuel economy requirements for passenger vehicles. Gearing up for the launch, the state has requested that automakers present detailed information on their future products and explain why they’re seeking relief from fueling mandates they previously agreed to adhere to.

“They’ve never submitted to us any information that would back up those claims in any detail to help us craft a solution,” Mary Nichols, chair of the California Air Resources Board, (CARB), said in a Thursday interview with .  (Find Out…)

By on August 7, 2018

fairfax line assembly factory general motors, Image: General Motors

President Donald Trump was obsessed with U.S. employment long before being sworn in as Commander-in-chief. In fact, the jobs rhetoric played a major role in swaying traditionally democratic voters in states like Michigan. The promise of manufacturing positions, the kind of work American used to be known for, was too tempting for some living in the Rust Belt to ignore.

“We’re going to work on the CAFE standards so you can make cars in America again,” he told Detroit’s auto workers in March 2017, referencing the Corporate Average Fuel Economy. “We’re going to help the companies, and they’re going to help you.”

Those fuel economy rollbacks are now fast approaching, after the National Highway Traffic Safety Administration and Environmental Protection Agency released their official proposal last week. But will it truly help bolster employment rates in the United States? The answer depends largely upon who you ask. (Find Out…)

By on August 3, 2018

The Trump administration’s ongoing endeavor to replace existing fuel economy mandates with something easier on automakers is a hot topic, but the issue has more angles than a rhombicosidodecahedron. One that took a backseat during much of our coverage is where the oil industry fits into all of this. We figured it was pretty obvious because, every time we heard the word “rollback,” our minds automatically added the cash register sound effect.

Car manufacturers aggressively lobbied for more lax corporate average fuel economy (CAFE) standards since Donald Trump took office. But so has the oil industry; it just wasn’t doing so quite as openly. So what exactly does the federal government’s fuel economy rollback mean for Big Oil? Don’t act as if you didn’t already know.

Cha-ching(Find Out…)

By on July 25, 2018

fuel gauge vintage

Andrew Wheeler, the acting head of the Environmental Protection Agency, said the United States needs a single standard for fuel efficiency for cars and trucks on Tuesday. It’s a sentiment shared by Mary Nichols, head of California Air Resources Board, but it’s likely to put the two at odds. Wheeler said the pair shared that singular goal based off a meeting held last week, but California isn’t seeking the same benchmarks as the current administration.

The state objects to the EPA’s plan to weaken Obama-era efficiency targets, and is currently in the midst of a political and legal battle with the agency. However, Wheeler confirmed that, under his watch, the group would continue seeking a “50-state solution.”  (Find Out…)

By on July 6, 2018

Environmental Protection Agency Administrator Scott Pruitt, who spearheaded the Trump administration’s initiative to roll back Obama-era fuel economy standards for light vehicles, has resigned. Even after assuming the position, Pruitt remained a tough sell as head of the EPA. His stance on climate change was uncharacteristic of any modern-day environmentalist and he seemed utterly bent on corporate deregulation to bolster profits and stimulate the economy.

Then came a flurry of scandals stemming from frivolous spending habits, improper use of authority, and possible business ties that would inhibit his ability to act in an unbiased manner. Numerous federal investigations were launched into these matters.

While a number of the impropriety claims came from political opponents actively hunting for gaps in his armor, let’s face it, Pruitt hasn’t been making things particularly difficult for them.  (Find Out…)

By on June 15, 2018

fuel gauge vintage

Despite the growing animosity, both California and the Trump administration are still willing to discuss the country’s changing emission regulations. The state is currently heading a lawsuit against the Environmental Protection Agency, claiming it “acted arbitrarily and capriciously” in overturning the previous administration’s decision to maintain Corporate Average Fuel Economy standards.

While the proposals issued by the current administration will eventually see those targets rolled back, a final decision has not been made. The White House claims it wants to maintain an open dialogue with the Golden State, hoping to reach an agreeable solution, but the California Air Resources Board has argued it doesn’t seem to be acting on those assertions. Meanwhile, EPA head Scott Pruitt maintains that the state will not dictate federal fueling rules as automakers beg the government to do everything in its power to ensure a singular national mandate.

It’s an ugly situation, which makes news of a new round of meetings all the more surprising.  (Find Out…)

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