Four major automakers – Ford Motor Co, BMW AG, Volkswagen AG, and Honda Motor Co – have recently announced a compromise with the state of California on vehicle emissions regulations.
In a collaborative effort, the automakers stated that ensuring the efficiency, safety, and affordability of American vehicles is a shared priority. This agreement also signifies a political win against the Trump administration’s stance, which did not back the move. A White House spokesperson, Judd Deere, emphasized the administration’s position in supporting a national fuel standard to advance the safety, cleanliness, and affordability of vehicles, with a belief that this standard should be set by the federal government rather than individual states.
Under the Trump administration, the Environmental Protection Agency (EPA) has rolled back emissions regulations. Previous controls set during the Obama era aimed for a fleet-wide fuel efficiency average of 47.6 miles per gallon by 2025, with subsequent annual increases of 5%. In contrast, Trump’s proposal targeted 37 miles per gallon by 2026.
The new agreement between the automakers and California includes provisions for manufacturers to earn credits by producing electric and hybrid vehicles. All parties involved have consented to follow California’s outlined approach while awaiting a national resolution. The joint statement expresses a willingness to compromise for the greater benefit, stating that a unified approach spanning all states has been the preferred pathway, recognizing that any agreement requires concessions.
