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Trump, Easing Emissions Rule, Vows to Expand Auto Jobs Trump, Easing Emissions Rule, Vows to Expand Auto Jobs
(35 minutes later)
YPSILANTI, Mich. — Rolling back a move by his predecessor to tighten fuel-economy standards, President Trump declared Wednesday that the reversal was just a first step in a campaign to expand American auto manufacturing jobs. YPSILANTI, Mich. — President Trump on Wednesday halted an effort to tighten the nation’s fuel-economy standards, declaring that the move was just a first step in a campaign to expand American auto manufacturing jobs.
The president, in an appearance before hundreds of auto executives and workers in a former assembly plant near Detroit, said his administration would reopen a crucial review of federal mileage rules as part of a larger emphasis on cutting corporate regulations. Mr. Trump, appearing before hundreds of auto executives and workers at a former assembly plant near Detroit, said his administration would reopen a crucial review of federal mileage rules as part of a broader emphasis on reducing corporate regulations.
“We are going to work on the CAFE standards so we can make cars in America again,” Mr. Trump said, referring to the rules on corporate average fuel economy that were put in place in the final days of the Obama administration. “We are going to work on the CAFE standards so we can make cars in America again,” the president said, referring to rules related to corporate average fuel economy that President Barack Obama’s administration put in place in its final days.
His remarks came after a meeting with executives of the Detroit automakers — General Motors, Ford Motor and Fiat Chrysler — as well as Michigan workers and elected officials. Mr. Trump’s remarks came after a meeting with executives of the Detroit automakers — General Motors, Ford Motor and Fiat Chrysler — and with Michigan workers and elected officials.
“We want to be the car capital of the world again,” he said. “And we will be.” “We want to be the car capital of the world again,” the president said. “And we will be.”
Speaking in front of a sign that said “Buy American — Hire American,” the president said he expected that stripping away regulations would spur more automotive production in the United States. Speaking in front of a sign that said “Buy American — Hire American,” Mr. Trump said he expected that stripping away regulations would spur the more automotive production in the United States.
And he pledged again to stop the flow of automotive investment and jobs to Mexico under the North American Free Trade Agreement, which he termed “a total disaster.”And he pledged again to stop the flow of automotive investment and jobs to Mexico under the North American Free Trade Agreement, which he termed “a total disaster.”
“The assault on the American auto industry is over,” he said.“The assault on the American auto industry is over,” he said.
While he praised recent announcements of new American jobs by G.M., Ford and Fiat Chrysler, Mr. Trump said he expected much more hiring in the future. While he praised recent announcements by G.M., Ford and Fiat Chrysler that they would add more jobs in the United States, Mr. Trump said he expected much more hiring in the future.
“I told them that’s peanuts,” he said, referring to his meeting with the Detroit auto execs. “They’re going to be building new plants and expanding plants.”“I told them that’s peanuts,” he said, referring to his meeting with the Detroit auto execs. “They’re going to be building new plants and expanding plants.”
Mr. Trump’s decision to reopen the government’s review of long-term fuel-economy standards gives automakers an opportunity to argue for less stringent rules for new cars and trucks. Rules issued by the Obama administration called for a national standard of 54.5 miles per gallon by 2025 across the automakers’ fleets. Mr. Trump’s decision to reopen the government’s review of long-term fuel-economy standards gives automakers an opportunity to argue for less stringent rules for new cars and trucks. The rules issued by the Obama administration called for a national standard of 54.5 miles per gallon by 2025 across the automakers’ fleets.
Industry officials were effusive on Wednesday in their praise of Mr. Trump’s move. “The Trump administration has created an opportunity for decision-makers to reach a thoughtful and coordinated outcome predicated on the best and most current data,” said Mitch Bainwol, president of the Auto Alliance trade group, which represents 18 car companies, including General Motors, Ford and Fiat Chrysler. Industry officials were effusive on Wednesday in their praise for Mr. Trump’s move.
Some automakers, including General Motors and Ford, have already pledged to add or retain thousands of American jobs in response to Mr. Trump’s criticisms of their investments in Mexican plants that export vehicles to the United States. “The Trump administration has created an opportunity for decision-makers to reach a thoughtful and coordinated outcome predicated on the best and most current data,” said Mitch Bainwol, president of the Auto Alliance trade group, which represents 18 car companies, including General Motors, Ford and Fiat Chrysler.
Some automakers, including G.M. and Ford, have already pledged to add or retain thousands of American jobs in response to Mr. Trump’s criticisms of their investments in Mexican plants that export vehicles to the United States.
But the potential rollback of the fuel-economy rules will not necessarily translate into a significant number of new jobs.But the potential rollback of the fuel-economy rules will not necessarily translate into a significant number of new jobs.
While the United States market has enjoyed record sales of new vehicles in the last two years, industry analysts expect volume to level off — making automakers wary of adding production capacity. The United States market has enjoyed record sales of new vehicles in the past two years, but industry analysts expect volume to level off, making automakers wary of adding production capacity.
The financial collapse of the industry in the last recession is still a fresh and painful memory for most automakers, particularly G.M. and Chrysler — now Fiat Chrysler — which needed federal bailouts and government-sponsored bankruptcies to survive.The financial collapse of the industry in the last recession is still a fresh and painful memory for most automakers, particularly G.M. and Chrysler — now Fiat Chrysler — which needed federal bailouts and government-sponsored bankruptcies to survive.
Adding production capacity in a flat market for new vehicles could upset the industry’s steady recovery and jeopardize the big profits earned in recent years by G.M., Ford and other companies. Adding production capacity in a flat market for new vehicles could upset the industry’s steady recovery and jeopardize the large profits earned in recent years by G.M., Ford and other companies.
G.M. was the first auto company to react on Wednesday to Mr. Trump’s renewed push for more manufacturing jobs.G.M. was the first auto company to react on Wednesday to Mr. Trump’s renewed push for more manufacturing jobs.
Without mentioning the decision on fuel standards, G.M. said it would add or retain about 900 jobs at three Michigan plants over the next year. Without mentioning the decision on fuel standards, G.M. said it would add or retain about 900 jobs at three Michigan plants over the coming year.
The company’s chief executive, Mary T. Barra, said in a statement that the G.M. move underscored the “overall positive outlook for the auto industry and the U.S. economy.” The company’s chief executive, Mary T. Barra, said in a statement that the G.M. move underscored an “overall positive outlook for the auto industry and the U.S. economy.”
Auto executives also hope Mr. Trump will support investments in new technology for autonomous vehicles that creates jobs in the United States. Auto executives also hope that Mr. Trump will support investments in new technology for autonomous vehicles as a way of creating jobs in the United States.
But even with the blossoming partnership between automakers and the Trump administration, industry executives remain worried about the potential for a border tax on imports from Mexico and elsewhere. Even with the blossoming partnership between automakers and the Trump administration, industry executives remain worried about the potential for a border tax on imports from Mexico and elsewhere.
A tax on imported vehicles could raise prices on several models in high demand by American consumers, including pickup trucks made in Mexico by G.M. and Fiat Chrysler.A tax on imported vehicles could raise prices on several models in high demand by American consumers, including pickup trucks made in Mexico by G.M. and Fiat Chrysler.
Mr. Trump has an unlikely Detroit ally, however, in his push for such a tax: the United Automobile Workers union.Mr. Trump has an unlikely Detroit ally, however, in his push for such a tax: the United Automobile Workers union.
The union’s leadership backed Hillary Clinton, the Democratic nominee, in last fall’s presidential election, but at least one-third of the U.A.W.’s members voted for Mr. Trump. The union’s leadership backed Hillary Clinton, the Democratic nominee, in last year’s presidential election, but at least one-third of U.A.W. members voted for Mr. Trump.
And while the union’s president, Dennis Williams, has criticized Mr. Trump’s policies on issues such as immigration, he has endorsed the new administration’s intent to renegotiate the North American Free Trade Agreement. And while the union’s president, Dennis Williams, has criticized Mr. Trump’s policies on issues such as immigration, Mr. Williams has endorsed the new administration’s plan to renegotiate the North American Free Trade Agreement.
In a meeting with reporters last month, Mr. Williams said the union was gratified that Mr. Trump sought to reverse the tide of manufacturing investments by automakers in Mexico. Workers there earn a fraction of the $29 an hour that veteran U.A.W. members receive in American plants operated by the Detroit auto companies. In a meeting with reporters last month, Mr. Williams said the union was gratified that Mr. Trump wanted to reverse the tide of manufacturing investments by automakers in Mexico. Workers there earn a fraction of the $29 an hour that veteran U.A.W. members receive in American plants operated by the Detroit auto companies.
“I’m going to give him kudos for it,” Mr. Williams said. “We’ve been hollering about this for 20 years, and he is the first president who has brought this up.”“I’m going to give him kudos for it,” Mr. Williams said. “We’ve been hollering about this for 20 years, and he is the first president who has brought this up.”
Mr. Williams was less supportive of Mr. Trump’s desire to reduce regulations on fuel economy, noting the benefit to consumers of better mileage on new vehicles.Mr. Williams was less supportive of Mr. Trump’s desire to reduce regulations on fuel economy, noting the benefit to consumers of better mileage on new vehicles.
“I think it would be a great mistake for the companies to walk way from the fundamental principles about CAFE,” he said.“I think it would be a great mistake for the companies to walk way from the fundamental principles about CAFE,” he said.
The review of the fuel rules will stretch into 2018, and it is already drawing heated opposition from environmental groups.The review of the fuel rules will stretch into 2018, and it is already drawing heated opposition from environmental groups.
“The future of the U.S. auto industry is at stake, and Mr. Trump is being shortsighted,” said Dan Becker, director of the Safe Climate Campaign.“The future of the U.S. auto industry is at stake, and Mr. Trump is being shortsighted,” said Dan Becker, director of the Safe Climate Campaign.
Mr. Becker and other environmental advocates say that the auto companies have the technology to meet the 2025 standards and that any increase in vehicle prices to accommodate fuel-saving equipment will be more than offset by the savings consumers will get at the gas pump. Mr. Becker and other environmental advocates say that auto companies have the technology to meet the 2025 standards and that any increase in vehicle prices to accommodate fuel-saving equipment would be more than offset by the savings consumers get at the gas pump.
“The E.P.A. determined that the benefits of clean-car standards far outweigh the costs — to the tune of $98 billion in savings after figuring in the cost of gas-saving technology,” Mr. Becker said.“The E.P.A. determined that the benefits of clean-car standards far outweigh the costs — to the tune of $98 billion in savings after figuring in the cost of gas-saving technology,” Mr. Becker said.
Michael Brune, the executive director of the Sierra Club, indicated that environmental groups would challenge the legality of any effort to reduce the 2025 fuel-economy target and levels of carbon emissions agreed to five years ago by automakers in the last round of CAFE negotiations with the government. Michael Brune, executive director of the Sierra Club, indicated that environmental groups would challenge the legality of any effort to reduce the 2025 fuel-economy target and levels of carbon emissions agreed to five years ago by automakers in the last round of CAFE negotiations with the government.
“Donald’s Trump’s executive order is reckless and puts the health and safety of American families in jeopardy,” Mr. Brune said in a statement on Wednesday. “As we fight back against any efforts to scrap these lifesaving emissions reductions, we will be on strong legal footing.”“Donald’s Trump’s executive order is reckless and puts the health and safety of American families in jeopardy,” Mr. Brune said in a statement on Wednesday. “As we fight back against any efforts to scrap these lifesaving emissions reductions, we will be on strong legal footing.”