Tag: Trump

By on June 21, 2019

Capitol Hill was the scene of some high-school drama this week after representatives from the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) reportedly refused to sit at the same table while discussing fueling regulations with the U.S. House Energy and Commerce Committee.

As petty as this seems, it illustrates the overall situation rather well. White House officials terminated talks with California in February, citing an inability to progress the debate. Meanwhile, CARB has been claiming the Trump administration doesn’t want to hear its case and has instead sought to strip the state of its ability to self regulate in order to pass reforms that would freeze national emissions standards at 2020 levels though 2026.

Thursday’s congressional bickering helped paint a clearer picture of what the communications breakdown looked like.  (Find Out…)

By on June 20, 2019

The United Auto Workers is spending Thursday telling Congress that the union opposes the Trump administration’s proposal to freeze fuel efficiency requirements at 2020 levels through 2026… sort of. While the UAW expressed moderate environmental concerns in the past, most of its opposition to the rollback has revolved around corporate investments into the industry. In fact, the union’s research arm called fuel economy the auto industry’s “future” in 2018.

This time around, the UAW seems to be singularly focused on business aspects. According to a prewritten testimony, UAW Legislative Director Josh Nassar intends to tell two subcommittees of the U.S. House Energy and Commerce Committee that the union is in line with automakers’ concerns about the proposal leading to “protracted litigation and uncertainty in the industry that will limit growth.” (Find Out…)

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 10, 2019

After the United States and Mexico signed an agreement to stem the flow of illegal migrants from Central America across their shared border, President Donald Trump’s latest tariff proposal was taken off the table. You could almost hear the sphincters of every global automaker collectively unclench in that moment. Unfortunately, their rectal vacation appears to have been short lived.

“We have fully signed and documented another very important part of the Immigration and Security deal with Mexico, one that the U.S. has been asking about getting for many years. It will be revealed in the not too distant future and will need a vote by Mexico’s legislative body,” on Monday. “We do not anticipate a problem with the vote but, if for any reason the approval is not forthcoming, tariffs will be reinstated!”  (Find Out…)

By on June 8, 2019

fca

The United States maintained the threat of tariffs on Mexican goods until Friday night, less than three days before a 5 percent levy was poised to hit incoming products from south of the border. It seems the pressure worked, with the U.S. and Mexico signing a deal late Friday to prevent both tariffs and the northward flow of illegal migrants from Central America.

Automakers are no doubt breathing a sigh of relief. (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

Image: GM

Pity the poor Buick Envision. As one of the few Chinese-built vehicles sold in America, it earned an unpatriotic stigma upon its arrival. There’s no word on how many UAW workers own one. Meanwhile, the compact crossover launched partway through the 2016 model year with only high-end trims in tow, saddling it with a steep starting price. The entry price has since declined to saner levels.

Just when Buick thought it had righted the Envision ship, the U.S. hiked tariffs on a slew of Chinese goods to 25 percent last July, suddenly making the Envision a less profitable endeavor for the doctor’s car brand. As we learned today, General Motors’ appeal for mercy apparently fell on deaf ears. (Find Out…)

By on June 1, 2019

Ram Heavy Duty Saltillo Mexico assembly, Image: FCA

The profit-focused appeal of building vehicles in low-cost jurisdictions propelled many automakers to boost manufacturing capacity in America’s southern neighbor — a decision that now haunts them.

After President Donald Trump issued a Thursday statement declaring his administration would levy a 5 percent tariff on all Mexican-made goods starting June 10th, some $17 billion in market value evaporated from top automakers the following day. Ford, General Motors, and Fiat Chrysler all saw their share prices tumble. Should Trump follow through on his promise of an escalating tariff (a threat designed to stem illegal migration into the U.S.), the pain felt by both companies and their customers will be extreme.

Naturally, the industry is pushing back the best it can. (Find Out…)

By on May 31, 2019

Ram HD production Saltillo assembly, Image: FCA

Just when it seemed the trade climate in the North American region was easing, President Donald Trump launched a new salvo late Thursday, promising a 5 percent levy on all Mexican goods crossing the U.S. border if the country doesn’t stem the flow of illegal migrants.

The tariff would land on all Mexican goods on June 10th, ramping up to 10 percent on July 1 before topping out at 25 percent by October. For automakers and those who sell (and buy) the final product, the prospect of a new import levy is the stuff of nightmares. (Find Out…)

By on May 17, 2019

U.S. President Donald Trump pushed the threat of tariffs on imported vehicles to the background on Friday, announcing a 180-day pause as the country negotiates trade agreements with Japan and the European Union.

The delay comes a day ahead of a Saturday deadline imposed by the Commerce Department. In February, the department delivered the findings of an investigation on whether auto imports represent a national security threat to the United States. The report, not seen by the public, issued recommendations to the White House. (Find Out…)

By on March 21, 2019

Image: GM

Speaking against a very high-calibre backdrop at the Joint Systems Manufacturing Center in Lima, Ohio, President Donald Trump turned up the heat on General Motors to do something for the Lordstown-area economy. The automaker’s now-shuttered assembly plant, which entered “unallocated” status earlier this month, had been an economic driver in northeast Ohio since its opening in 1966.

Trump’s message to GM: Do something with the plant, or sell it to someone who will. While the automaker maintains that the status of its idled plants hinges on United Auto Workers labor negotiations, it does say it’s open to Lordstown Assembly offers. It’s already had some. (Find Out…)

By on March 18, 2019

Donald Trump apparently belongs to the 71 percent of Americans who remain averse to the thought of riding in self-driving cars. It’s a position that appears to be incongruous with the National Highway Traffic Safety Administration’s deregulation strategy. But there’s always a little room for someone’s personal preference to exist in tandem with public policy. At least, there used to be.

Considering the president’s involvement in American industrial matters routinely make him the central focus of auto-related topics, we’ll keep this one relatively brief. But the accompanying details of this story are too interesting to simply ignore.  (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 19, 2019

The showdown between the European Union and United States over auto tariffs reminds this viewer of Charles Bronson and Henry Fonda in Once Upon a Time in the West, and with good reason. Both players appear ready to reach for their Colt Single Action Army in a bid to do maximum damage to the other.

After the U.S. Commerce Department delivered a confidential report to the White House on Sunday, the EU is warning its trading partner that any tariffs imposed on European-built vehicles will be met with similar levies on American goods. (Find Out…)

By on November 28, 2018

2017 Ford Escape Assembly Factory Production, Image: Ford Motor Company

Have you heard about that other American automaker — the one that doesn’t callously ruin lives? This question, no doubt percolating inside the craniums of U.S. lawmakers and pundits, doesn’t need to be spoken to be heard.

What would normally be a simple announcement of a production increase at one plant and a decrease at two others took on a symbolic nature this week. Ford wants to build more large SUVs but requires fewer cars. Thanks to a quirk of geography, no layoffs are planned — something that can’t be said of GM’s scorched earth plan, right? (Find Out…)

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