Carmakers Urge Trump to Compromise on Emission Rules

In a strongly worded letter to President Donald Trump, 17 major carmakers implore him to compromise with California on a “midway” solution to vehicle emissions and fuel economy rules.

The Trump administration proposes to freeze emission and fuel economy targets in 2022 and scrap tougher standards currently scheduled to phase in through 2025. California insists it will enforce the original rules.

The state has vowed a protracted legal battle if the Trump administration follows through later this year with a freeze on the standards. Vehicle manufacturers warn the result would roil the U.S. market with two sets of standards: one for California and a dozen states that follow its regulations, and one for everyone else.

Carmakers say dual standards and a lengthy court fight would create “untenable” instability across the industry. “We strongly believe the best path…is a final rule supported by all parties—including California,” their letter says.

Among the companies who signed the letter to Trump are General Motors, Ford, Honda, Nissan, Toyota and Volkswagen. A similar letter was delivered to California Gov. Gavin Newsom.

But neither party appears likely to bend. The Trump administration broke off talks with California in February, declaring the state had failed to offer a “productive alternative.” The state’s regulators grouse that the White House had stopped communicating in December and refused to respond to compromise suggestions or offer any alternative.

In a tense conference call, also in February, the White House gave carmakers an “us-or-them” ultimatum that appeared to rule out any willingness to compromise.

Newsom tells The New York Times he has no interest in a “midway” compromise which would loosen California’s standards. “We should keep working toward one national standard,” he says: “One that doesn’t backtrack on the progress states like California have made.”