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The builders' letter is Trump's latest attempt to overturn auto manufacturing regulations, an industry he has pledged to support. For months, some industry leaders and lobbyists have been privately telling the White House that the president's efforts could do more harm than good, but Thursday's letter is a particularly strong drag.
"We believe that the rule is still being finalized, there is still time to develop a final rule that is good for consumers, policy makers and automakers," said Gloria Bergquist, vice president of Alliance of Automobile Manufacturers.
Criticizing the president's plan involves risks for automakers. The White House has sought support for its actions and, in private, some officials have expressed concern that industry critics will lead the president to retaliate by imposing tariffs on motor vehicle imports. This too could be painful as many cars and components are now manufactured or partially assembled across the border in Mexico or Canada.
But they also fear the costs of uncertainty and regulation the headaches that potentially await them if Mr. Trump's inaction unfolds as expected.
For example, automakers should demonstrate that the average mileage of all cars that they sell in California is much higher than in states like Utah, where the new Trump standard of about 37 miles per gallon would be in effect.
But as Americans increasingly prefer SUVs to fuel-efficient vehicles, automakers may need to dramatically reduce electric vehicle prices in high-mileage countries, which could cost them money, while increasing price of energy. At the same time, car lots in low mileage states may contain a completely different combination of vehicles at different prices.
If car buyers simply cross state borders to buy energy and introduce them into less polluting states, regulations may pose more problems for companies, which could also be fined by states for mileage. high if they do not comply.
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