Category: Government

By on July 6, 2018

Environmental Protection Agency Administrator Scott Pruitt, who spearheaded the Trump administration’s initiative to roll back Obama-era fuel economy standards for light vehicles, has resigned. Even after assuming the position, Pruitt remained a tough sell as head of the EPA. His stance on climate change was uncharacteristic of any modern-day environmentalist and he seemed utterly bent on corporate deregulation to bolster profits and stimulate the economy.

Then came a flurry of scandals stemming from frivolous spending habits, improper use of authority, and possible business ties that would inhibit his ability to act in an unbiased manner. Numerous federal investigations were launched into these matters.

While a number of the impropriety claims came from political opponents actively hunting for gaps in his armor, let’s face it, Pruitt hasn’t been making things particularly difficult for them.  Read More >

By on July 5, 2018

BMW SAV assembly plant South Carolina - Image: BMW

The fresh threat of new automotive and parts tariffs from the United States has everyone up in arms. We recently published an exhaustive list of comments manufacturers and local governments made to the U.S. Commerce Department. They, along with suppliers, universally despise the idea and are doing everything in their power to convince the Trump administration to reconsider. Many are even discussing the grim prospect of layoffs and suspending investments.

However, the president remained firm on doing whatever it takes to bolster domestic production and U.S. automotive exports while the world tried to make sense of his strategy. Was this a madman playing hardball and gambling with the industry’s future, or the work of a master dealmaker forcing others to come to the table? Perhaps a little of both?

Earlier this week, the U.S. ambassador to Germany told German car executives that President Donald Trump would suspend threats to impose tariffs on cars imported from the European Union if the European Union lifts duties on U.S. cars. But the wildest part of all of this is that both the automakers and the German government seem to be in support of it.  Read More >

By on June 28, 2018

2018 Toyota Camry LE - Image: Toyota

Toyota’s not going silently into a potential future where tariffs are as prevalent as man buns and tattoos in a brewpub. In its submission to the U.S. Commerce Department, Toyota wants the government to know it’s a standout business, and that a tariff on imported automobiles and auto parts would backfire.

Even for vehicles built in the U.S., American buyers would face a steep price hike, Toyota claims. Care to fork over an additional $1,800 for a Kentucky-built Camry? Meanwhile, a Canadian supplier association representative warns of “carmageddon” if the tariffs come to pass. Read More >

By on June 28, 2018

2017 Jeep® Renegade Limited

Jeeps smallest U.S. offering stands to be hit hard by proposed import tariffs, according to calculations from an investment advisory firm, and the volume of vehicles Fiat Chrysler brings in from outside U.S. borders would see the automaker take it on the chin.

With the Trump administration mulling a range of tariffs, the firm tabulated just how much the import duties could cost FCA. If the tariffs come to pass, expect to see fewer Jeep Renegades on your local dealer lot. Read More >

By on June 26, 2018

Last week, we discussed how the motorcycle industry’s total failure to entice new riders for over a decade has come back to bite it in the ass. Two-wheeled ownership declined drastically in the United States after the Great Recession and never really bounced back. Blame a disinterested population of youngsters with less discretionary funds and few entry-level options to consider.

I speculated that automakers could be on a similar path, despite the passenger car segment being more of a necessity for average commuters and less apt to collapse outright. But that isn’t to presume they might not be subject to similar pitfalls, and we’ve a new one to consider. Harley-Davidson, which serves as the poster child for the motorcycle industry’s current crisis, recently announced it will end all U.S. production of motorcycles sold in Europe.

Those bikes will now be manufactured overseas. The company said in a regulatory filing with the U.S. Securities and Exchange Commission that retaliatory tariffs levied by the European Union on motorcycles exported from the U.S. jumped from 6 percent to 31 percent. Harley-Davidson’s already expensive products come at an additional premium in Europe, and the the company estimates the new fines will add another $2,200 per motorcycle, on average. Read More >

By on June 25, 2018

2018 Chevrolet Bolt - Image: Chevrolet

Should Tesla hit its vaunted 5,000-Model-3s-per-week production target at the end of this month (a figure that means nothing if it can’t be sustained over the long term), the electric automaker faces another hurdle: the impending phase-out of the $7,500 federal EV tax credit.

While Tesla isn’t the only automaker staring down the barrel of this incentive loss, it’ll be the first to cross that line. Estimates place the phase-out point in July, though the taps only begin turning off two quarters after the automaker hits the 200,000 plug-in vehicles mark. Unlike some of its its electric rivals, however, the impact on Tesla won’t be as painful. Read More >

By on June 16, 2018

2018 Ford Super Duty, Image: Ford

The builder of the world’s best-selling vehicle, which just happens to be a large truck, finds itself in the crosshairs of yet another environmental ad campaign. Like past campaigns against the automaker, the coalition of four leading environmental groups claim Ford’s commitment to the environment pales in comparison to its thirst for profits.

Oh, and Ford Motor Company might as well change the name on its logo to “Trump.”

That’s what readers of The Detroit News and Detroit Free Press read on Saturday morning, after the Sierra Club (which is not a British Ford fan group, to be clear), Greenpeace, Safe Climate Campaign, and Public Citizen ran giant ads in both newspapers slamming the automaker for backing the Trump administration’s planned rollback of fuel economy standards.

Whoa, whoa, whoa, take it easy, Ford responded. Read More >

By on June 15, 2018

fuel gauge vintage

Despite the growing animosity, both California and the Trump administration are still willing to discuss the country’s changing emission regulations. The state is currently heading a lawsuit against the Environmental Protection Agency, claiming it “acted arbitrarily and capriciously” in overturning the previous administration’s decision to maintain Corporate Average Fuel Economy standards.

While the proposals issued by the current administration will eventually see those targets rolled back, a final decision has not been made. The White House claims it wants to maintain an open dialogue with the Golden State, hoping to reach an agreeable solution, but the California Air Resources Board has argued it doesn’t seem to be acting on those assertions. Meanwhile, EPA head Scott Pruitt maintains that the state will not dictate federal fueling rules as automakers beg the government to do everything in its power to ensure a singular national mandate.

It’s an ugly situation, which makes news of a new round of meetings all the more surprising.  Read More >

By on June 12, 2018

Almost all models occasionally burst into flames for one reason or another, but there’s too many older Kia and Hyundai models catching fire to write it off as a statistical inevitability, the Center for Auto Safety says.

In a letter sent to the National Highway Traffic Safety Administration on Monday, the nonprofit advocacy group used owner-submitted questionnaires from the NHTSA’s own website as proof that something’s amiss with certain 2011-2014 Kia and Hyundai models. 120 reported vehicle fires and 229 cases of melted wires in the engine compartment, smoke, or burning odors should be enough to spark an investigation, CAS said. Read More >

By on June 1, 2018

fuel gauge vintage

The Trump administration has enacted phase two of its plan to revise Obama-era rules designed to cut pollution from vehicle emissions. In a proposal sent to the White House Office of Management and Budget on Thursday, the Environmental Protection Agency announced its intention to rescind the California waiver that separates it from the federal standards the state uses to regulate greenhouse gas emissions from automobiles.

Since allowing California to set its own emission standards would effective split the country’s auto market, the EPA has been clear that its ideal solution would be to cut a deal with the Golden State. Agency head Scott Pruitt previously said California “shouldn’t and can’t dictate [fueling regulations] to the rest of the country,” but acted in a manner that suggested a compromised could be reached.

This was followed by a lawsuit filed by 17 U.S. states, along with the California governor’s office, California attorney general, and the California Air Resources Board (CARB), alleging that the EPA had “acted arbitrarily and capriciously” in its decision to roll back the previous administration’s decision. While the odds are good that the Trump administration wasn’t ever interested in bending to California’s more stringent pollution policies, this was likely the point of no return — squashing any hope for meaningful negotiations. Read More >

By on May 31, 2018

There’s been quite a bit of the old “he said, she said” as the global trade war between developed nations coalesces. Germany has not covered U.S. President Donald Trump’s trade policy favorably, not that it has much reason to. His new tariffs on imported steel and aluminum has tested relationships with numerous countries and, while it isn’t the biggest exporter of metal to the United States, Germany has something to lose. Likewise, proposed duties on passenger vehicles have sincerely rubbed Deutschland the wrong way.

However, the issue was further complicated this week after a gossipy report surfaced claiming Trump told French President Emmanuel Macron in April that he would continue hampering the European auto manufacturers until there are no Mercedes-Benz vehicles driving in America.  Read More >

By on May 29, 2018

Several science advisers for the Environmental Protection Agency claim the agency has ignored its own research in order to rationalize the push to relax corporate average fuel economy (CAFE) targets.

A group within the Science Advisory Board has recommended reviewing the EPA’s justifications for the intended rollbacks, including the agency’s conclusion that Obama-era auto efficiency requirements must be changed because they are too stringent. It’s hoping to take the agency to task and force it to show evidence that upholds is proposal.

While EPA head Scott Pruitt sides with the President and automotive industry by indicating the current standards are too strict, very little scientific research has been cited to support the claim. In fact, the revision seems to hinge mainly on the belief that automakers might not be able to adhere to the standards approved by the Obama administration in its final days. “Obama’s EPA cut the midterm evaluation process short with politically charged expediency, made assumptions about the standards that didn’t comport with reality, and set the standards too high,” Pruitt said in April.  Read More >

By on May 19, 2018

1975 Mercedes-Benz 240D in California wrecking yard, RH view - ©2017 Murilee Martin - The Truth About Cars

It’s open season on compression ignition vehicles in the Fatherland. The birthplace of the diesel engine now says German cities can implement diesel driving bans whenever, and wherever, they want.

The Friday ruling by the country’s top court comes after a lawsuit against Germany and four other European Union member states by the EU, the result of higher-than-allowed air pollution levels in numerous urban areas.

“Thanks, dad,” the country’s auto industry must be thinking. Read More >

By on May 17, 2018

If you forgot today was the deadline for finalizing North American Free Trade negotiations, don’t worry, so did practically everyone else. In fact, the whole affair is starting to feel like that old car that’s been sitting in your friend’s yard for far too long. He keeps telling you he’s going to fix it up and make it better than new. “This is the summer,” he says. But you know he’s just going to keep mowing around it while it continues to rust and collect mice, so you’ve tried to push it out of your mind.

Like the restoration, the entire concept of a deadline for the trade deal is rather arbitrary at this point. NAFTA’s initial target date for an agreement between the three countries was March 31st, roughly one year after negotiations began. The May 17th deadline was claimed by U.S. Speaker of the House Paul Ryan, who said Congress had to be notified under the Trade Promotion Authority statute.

“We need to receive the notice of intent to sign soon in order to pass it this year,” explained Ryan’s office. “This is not a statutory deadline, but a timeline and calendar deadline.”

Basically, Congress wants to influence the president and NAFTA negotiators to conclude talks swiftly and reach an agreement before midterm elections. But Mexican officials warned everyone not to get their hopes up. “The possibility of having the entire negotiation done by Thursday isn’t easy, we don’t think it will happen by Thursday,” said Mexican Economy Minister Ildefonso Guajardo earlier this week.  Read More >

By on May 17, 2018

Tesla Model S Grey - Image: Tesla

Last Friday’s crash of a Model S in South Jordan, Utah will get the magnifying glass treatment from the National Highway Traffic Safety Administration. The agency announced Wednesday it will send a team of investigators to probe why the vehicle — which the admittedly distracted driver said was in Autopilot mode at the time of impact — collided with a stopped fire truck at 60 mph.

It’s the second NHTSA investigation of an Autopilot-related collision this year. Read More >

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