Automakers Reach Emissions Agreement With California

Four major automakers just cut a deal with the state of California.

Ford Motor Co, BMW AG, Volkswagen AG, and Honda Motor Co said on Thursday that they reached an agreement to compromise with the Californian government on vehicle emissions rules.

In a joint statement, the four automakers said “Ensuring that America’s vehicles are efficient, safe and affordable is a priority for us all.” The joint agreement is also a political victory against the Trump administration, which didn’t support the move. “The Trump administration believes strongly in a national fuel standard that promotes safer, cleaner and more affordable vehicles. The federal government, not a single state, should set this standard. We are moving forward to finalize a rule for the benefit of all Americans,” said Judd Deere, a White House spokesman.

The Environmental Protection Agency (EPA) has cut back on emissions controls since the Trump administration took office. The former Obama-era controls insisted on a fleet-wide fuel efficiency average of 47.6 miles per gallon by 2025, followed by annual increases of 5%. Trump’s alternative pushed for 37 miles per gallon by 2026.

The agreement between the automakers and California will also see automakers receive credits for building electric and hybrid vehicles. The path laid out by California will be agreed upon by all parties, while they await a unified national solution. “50-state solution has always been our preferred path forward and we understand that any deal involves compromise,” the joint statement said.

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