Trump may be about to give US automakers their first big win
Thus far, the new President - who roiled automakers over outsourcing and hiring during the election campaign - has suggested that he'll deliver the corporate tax cuts and regulatory changes that Ford, GM, and Fiat Chrysler Automobiles have been craving.
This big regulatory move could happen soon, according to the New York Times:
At the end of 2016, the Obama EPA locked in automaker targets under the Corporate Average Fuel Economy (CAFE) standards. Automakers will have to achieve a fleet average of 54.5 mpg by 2025.
The industry has actually made good progress on this goal, which led the government to commit to the standard. But automakers weren't pleased with what some termed a "short circuiting" of the review process. Ford CEO Mark Fields was particularly vocal. Fields said that it was important for the government to consider automakers' data and have an open discussion about whether it makes sense to stick to the CAFE timetable. Specifically, Fields wants the government to take into account the profitable surge in SUV and pickup truck sales, which have led the US market to record highs.
Sales of gas-electric hybrid vehicles, meanwhile, have been declining. And electric cars have largely disappointed, with sales only amounting to 1% on the global market. Carmakers haven't abandoned these vehicles, but from their perspective, they would prefer to modify the CAFE timetable so that they can sell as many trucks and SUVs as possible before the arrival of a downturn.