Automaker hopeful that Trump will ease gas mileage standards

Ford Motor Co.’s top executive is hopeful that President Donald Trump could ease government fuel economy requirements and reduce corporate taxes to help the auto industry grow and create jobs.
The comments from Chief Executive Mark Fields came Thursday, two days after he and his counterparts at Fiat Chrysler Automobiles and General Motors Co. met with Trump at the White House.
Fields said on a conference call after Ford announced its 2016 earnings that they discussed emissions and gas mileage requirements that were finalized by the Environmental Protection Agency (EPA) in the waning days of the Obama administration. “We may see some actions on that which could be positive for our business,” Fields said.
On Tuesday, Trump reiterated his warnings that companies making products such as cars in Mexico and shipping them to the US could be hit with a tax. But he also said environmental regulations have gotten “out of control,” an indication he could implement less-restrictive fuel economy standards.
Fields downplayed the potential impact of a border tax on Ford, saying it could actually help the company because a large percentage of its vehicles and parts are produced in the US. Chief Financial Officer Bob Shanks said Ford is in better shape than some competitors who ship more goods in from south of the border.
A week before Trump was inaugurated, the EPA moved to cement strict fuel economy requirements that force the auto industry to make new cars and trucks significantly more efficient.
The EPA completed a required midterm review of the standards put in place in 2012 and decided they should not be relaxed as requested by the auto industry. The action kept in place pollution reduction targets for the years 2022-2025. That means the fleet of new cars will have to average 51.4 miles per gallon by 2025, up more than 18 mpg from the 33.2 mpg requirement in 2015, the most recent year available.
Fields said the CEOs and Trump discussed having one national fuel economy standard instead of different numbers from two federal agencies and the state of California, giving the first details of the meeting.
Fields said there should be a balance between the cost of cars, creating jobs and protecting the environment. The auto industry contends that meeting the current EPA standards will add hundreds of dollars to the price of a vehicle. 
Fiat Chrysler CEO Sergio Marchionne, also said Thursday that Trump’s economic policies should have a positive impact on his company. He is hoping for reduced corporate tax rates but says he is not sure what Trump plans to do.

Source: Arab News