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Automakers seek flexibility on fuel economy

Environmental groups urge keeping Obama-era goals

By TOM KRISHER and SUDHIN THANAWALA, TOM KRISHER and SUDHIN THANAWALA, Associated Press
Published: September 25, 2018, 8:26pm
2 Photos
Paul Gipe protests Monday in Fresno, Calif., before the first of three public hearings on the Trump administration’s proposal to roll back car-mileage standards.
Paul Gipe protests Monday in Fresno, Calif., before the first of three public hearings on the Trump administration’s proposal to roll back car-mileage standards. gary kazanjian/Associated Press Photo Gallery

DEARBORN, Mich. — Automakers sought flexibility while environmental groups blasted the Trump administration’s proposal to roll back fuel economy standards at a public hearing on the plan in the industry’s backyard.

At the hearing Tuesday in Dearborn, Mich., home to Ford Motor Co. and just miles from the General Motors and Fiat Chrysler home offices, industry officials repeated two themes: They’ll keep working to make cars and trucks more efficient, but they may not be able to meet existing standards because people are buying more trucks and SUVs.

Environmental groups, though, urged the government to scrap its plan to roll back the standards and instead keep in place the ones that were reaffirmed in the waning days of the Obama administration. They said the technology to meet the standards at low costs is available, and they accused Trump’s Department of Transportation of twisting numbers to justify the rollback.

Nearly 150 people were scheduled to testify at the hearing, the second on the preferred option of the National Highway Traffic Safety Administration and Environmental Protection Agency to freeze the standards at 2020 levels.

In 2016, for the first time since the latest standards started, the auto industry couldn’t meet them without using emissions credits earned in prior years, said Steve Bartoli, vice president of fuel economy compliance for Fiat Chrysler Automobiles. The reason is because with relatively low gas prices, people are buying more trucks and SUVs rather than fuel-efficient cars, he said.

Last year, cars made up only 36 percent of the U.S. new-vehicle fleet, something that wasn’t expected when the current requirements were put in place six years ago, he said. “The forecasts referenced by the agencies at that time showed cars increasing from 50 percent to 57 percent of annual vehicle sales by 2025,” Bartoli said.

The Obama EPA proposed raising the standard to 36 miles per gallon by 2025, about 10 miles per gallon higher than the current requirement. The goal was to reduce car emissions and save money at the pump.

Trump administration officials say waiving the tougher fuel efficiency requirements would make vehicles more affordable, which would get safer cars into consumers’ hands more quickly.

But environmental groups said the Obama standards should remain in place, arguing that the technology is advancing so fast that automakers can meet the standards without adding huge costs for consumers. They said by the EPA’s own calculations, 60,000 jobs will be lost by 2030 developing and building fuel efficient technologies. They urged NHTSA and the EPA to scrap their preferred option of a freeze.

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