Car manufacturers to the benefit: reach an emissions deal with California

Automotive companies are undergoing major shifts in their business models due to the arrival of new players in transportation, such as Uber, climate change and the rise of electric vehicles, as well as the evolution of the tastes of their customers. The uncertainty caused by the turmoil of the regulations threatens to delay them.

A group of 17 automakers around the world wrote to President Donald Trump on Thursday asking him to abandon his plans to remove emissions standards. Instead, he wants the administration to resume negotiations on a compromise with a group of 13 states – led by California – that are committed to meeting more stringent standards.

Automakers initially backed higher standards, which had been announced for the first time in 2011, but companies have asked questions before President Barack Obama leaves office. The central question is: are the rules still practical given the relatively low gasoline prices and car buyers' preference for SUVs? Despite the objections of the industry at that time, the Obama administration upheld the standards just before leaving office.

But manufacturers spend billions to develop electric vehicles and more efficient gasoline cars. They fear the regulatory uncertainty that could result from years of litigation, particularly if it results in two different sets of emission rules for different regions of the country.

"The question of the right level of regulation is complex," said the industry in his letter to Trump. "What works best for consumers, communities and the millions of US employees working in the auto industry is a practical, achievable and consistent national standard across the 50 states."

The letter stated that the uncertainty caused by protracted litigation would be as "unsustainable" as the stricter rules. Automakers also said they needed regulatory certainty to make the necessary investments in the next generation of vehicles.

But California has struggled to keep the rules stricter in place for itself and 12 other states that follow its lead. These 13 states represent about one third of the country's population.

California and the federal government are already arguing in the courts over emissions rules and whether California will be able to maintain higher standards.

The automakers also sent Thursday a letter to California governor Gavin Newsom asking for a compromise with federal regulators. The letter stated that automakers thought the best deal would be one that "includes annual reductions in greenhouse gas emissions halfway between existing standards and the preferred path outlined in the Environmental Protection Agency's recent proposal. ".

Until now, California has shown no interest in giving up its stricter standards.

"Lowering auto emissions standards is bad for the climate and for the economy," Newsom said in a statement on the two letters of the industry. "We should continue to work for a national standard – one that does not come back on the progress made by states like California – California will continue to lead the coalition to prevent these rule changes from taking effect."

White House spokeswoman Judd Deere said that the fault of the absence of a single national standard is not based on the federal government but on California's refusal to negotiate with the government. Trump administration to reach a compromise.

Deere also said that the California Air Resources Board, the country's environmental regulator, "has not advanced productive alternative, and we are in the process of finalizing a rule to promote vehicles safer, cleaner and more affordable. "