Despite pressuring Donald Trump to lower corporate fuel economy mandates since practically day one of his presidency, automakers are now urging caution. The U.S. Transportation Department has drafted a proposal that would freeze vehicle requirements at 2020 levels through 2026, the Environmental Protection Agency’s lead administrator made a public case for rolling back mileage targets, and the White House seems ready to help car companies lower the bar.

Automakers seem to have won, so why the change of heart? Read More >

Few automakers clutch tradition with the same vise-like grip as Rolls-Royce. The British motor car builder, which recently debuted a high-bodied car (known in plebian circles as an “SUV”), isn’t planning on following in its rivals’ electrified footsteps just yet.

Oh sure, there’ll be electric cars, even in the coming decade, but the brand’s attachment to 12-cylinder engines — and the upper-crust clout those motors carry — can’t be shaken just because Jaguar and Germany have their sights set on a green stable.

This attitude mirrors Porsche’s devotion to the steering wheel. That said, the brand does have a date in mind for the full electrification of its products. Read More >

Ten automotive executives met with President Donald Trump this week, hoping to find ways to increase domestic production and mitigate the coming changes to corporate fuel economy regulations. The meeting, held in the White House’s Roosevelt Room, included General Motors’ Mary Barra, Ford’s Jim Hackett and Fiat Chrysler’s Sergio Marchionne. While a large portion of the event was spent discussing the administration’s attempt to roll back established fuel economy rules, Trump was focused on returning manufacturing jobs to the United States.

The president noted that FCA’s decision to spend $1 billion in order to expand truck assembly in Michigan made Marchionne more appealing than his contemporaries. “Right now, he is my favorite person in the room,” Trump said.  Read More >

America’s gas war is heating after 17 states, as well as the District of Columbia, filed a lawsuit against the Environmental Protection Agency’s decision to redefine U.S. vehicle emissions and fuel efficiency rules through 2025.

In April, EPA chief Scott Pruitt said the existing standards for model year 2022 to 2025 vehicles should be revised. The suit, filed in the U.S. Court of Appeals for the District of Columbia, alleges the EPA acted unpredictably, failed to follow its own regulations, and was in direct violation of the Clean Air Act. New York Attorney General Eric Schneiderman claimed the “Trump administration conducted a phony study” to justify altering emission rules to appease automakers and the oil industry.

Meanwhile, U.S. Representatives Doris Matsui of California and Paul Tonko of New York are demanding the EPA hand over all documents related to the study that resulted in the proposed changes to fuel economy standards.  Read More >

It’s been a rough road for autonomous vehicles. Despite development progressing significantly over the last decade, tech companies and automakers have been confronted with a myriad of issues. There have been intellectual property lawsuits, public safety concerns, and a recent backlash from government officials who are starting to wonder if the entire concept has been oversold.

However, the government still wants self-driving cars, especially the Pentagon. The Defense Advanced Research Projects Agency (DARPA) has been researching autonomous cars since the technology was in its infancy and, with so many firms trying to bring the technology to market, the military sees no reason it shouldn’t be the first.

It’s not like it doesn’t have the money. Read More >

Environmental Protection Agency chief Scott Pruitt spent the majority of his Thursday being raked over the coals by the House Energy and Commerce subcommittee before a second (even uglier) exchange with the House Appropriations subcommittee. The majority of the time was spent addressing concerns surrounding Pruitt’s expenditures — things like unnecessary first-class travel, a $43,000 soundproof phone booth, and his 24-hour security team. There were also discussions about alleged death threats against Pruitt and EPA staff, his overall conduct, and even a little bit on environmental policy.

Those discussions, however, saw some subcommittee members accuse Pruitt of championing the profits of oil companies and automakers over the wellbeing of the planet. The EPA head spent the duration of Thursday defending his actions, including planned regulatory rollbacks on fuel economy. He also supported the automotive industry’s proposal to abolish 87 octane and replace it with 95.

As ugly as the day was for Pruitt, Republicans occasionally hopped on the mic to gently support him. Rep. Kevin Cramer of North Dakota said, “I think the greatest sin you’ve done is, you’ve actually done what President Trump ran on.” Read More >

During the Trump administration’s year-long quest to roll back Corporate Average Fuel Economy (CAFE) targets, it attempted to give automakers in violation of the current standards a break by delaying the scheduled increase of penalties. The logic here is that the federal government is reassessing the Obama era standards, so it lumped in the new fines that were supposed to go into effect last July.

Those penalties represent an increase of $8.50 for every tenth of a mile per gallon a new car consumes above the minimum fuel standard. But with the new targets in quasi limbo, the updated fines were not being applied.

On Monday, a federal appeals court ruled the Department of Transportation cannot do that. Since the old rules are technically still in effect, the court ruled that automakers are still subject to the fine.  Read More >

If you spent the weekend in a state of breathless suspense, allow us to let some air out of that balloon. General Motors’ embattled Korean division, source of America’s smallest GM cars, has pulled back from the brink of bankruptcy after reaching an 11th hour deal with its union.

The tentative bargain opens the door to government assistance for the money-losing automaker, and should keep wee little vehicles rolling out of the country’s assembly plants. Read More >

Now that the Environmental Protection Agency has officially confirmed its intent to roll back Corporate Average Fuel Economy (CAFE) standards, the opposition has kicked things into high gear, mobilizing for the coming battle.

In one corner you have the White House and EPA Administrator Scott Pruitt seeking lowered emission mandates. They claim the Obama administration created unfeasible fueling regulations, noting that the public regularly opts for less-efficient trucks and SUVs and largely ignores the purchase of electric vehicles. In the other corner you have a handful of Senate Democrats, environmental groups, and a bunch of blue states led by California lawmakers. They all say the preexisting rules are not only feasible, but essential for the good of the nation.

If you’re wondering which side of the highly partisan issue is correct, we’d argue it has almost everything to do with your point of view. Both sides can make a fairly strong case, and will do just that as the battle heats up. Fortunately, this may not end up being a legitimate civil war — if the California Air Resources Board (CARB) is to be believed.  Read More >

“Paramount Leader” and Chinese President Xi Jinping clearly hopes to defuse China’s trade situation with the United States after Donald Trump launched an aggressive tariff hike on metals last month. The People’s Republic has already filed a complaint with the World Trade Organization alleging Trump’s decision to impose additional duties of 25 percent on steel and 10 percent aluminum violate international trade rules.

It’s also requesting 60 days of consultations with the United States to resolve the dispute.

There’s also an olive branch on the table. Xi has promised to cut auto import taxes and improve intellectual property protections in a bid to bolster foreign exports and ease tensions before the U.S. and China enter into a full-blown trade war. Meanwhile, the White House is threatening to increase duties on $50 billion worth of Chinese goods in response to claims that China essentially bullies foreign companies to hand over technology in order to sell it inside the country.  Read More >

It’s been over a year since the National Highway Traffic Safety Administration had someone officially running the show. While plenty of political appointments have been held up by Senate approval, the NHTSA is one President Trump has neglected since taking office. Former General Electric executive Heidi King has been the Deputy Administrator since September, and will be the one Trump taps to assume overall leadership of the agency. It’s about time.

The NHTSA has to cope with the planned fuel efficiency changes, oversee the neverending Takata airbag recalls, and start doing some damage control with autonomous vehicle development. While the recall issues are likely to remain business as usual, the current administration has pursued lax standards for both autonomous safety and corporate efficiency rules — and both have seen growing opposition.

Entire states are already pushing back against the proposed fuel efficiency rollbacks and there have been two fatalities involving self-driving and semi-autonomous technology within the last month. Because of this, promoting King might be a wise choice. Her corporate ties have some people concerned she’ll go easy on businesses, but at least she already has some experience in dealing with the big issues.  Read More >

The United States is softening the contentious automotive content requirement mandates pushed by the Trump administration as part of NAFTA renegotiation talks. While the demand is only one of many asks coming from the U.S., both Canada and Mexico said forcing 85 percent of a vehicle’s overall content to be sourced from the three countries (in order to side-step tariffs) was a nonstarter. Over the past year, the issue became a major sticking point in the trade talks — hindering progress and possibly dooming them to failure.

While Trump’s intent was to bolster domestic employment by incentivizing North American parts suppliers, automakers expressed concerns and noted it was often difficult to reach the current threshold of 62.5 percent.

The United States has now proposed applying the new content requirement only to major components (like a vehicle’s powertrain) while leaving fasteners (nuts, bolts, etc.) alone. As an automobile is made up of tens of thousands of individual parts, deciding what should and should not be counted will make a big difference. Still, some manufacturers are likely to have difficulty meeting the proposed content requirement on critical engine components.  Read More >

It looks as if the United States will find out if softened fuel economy targets will transform the domestic market into a haven for automobiles with exquisite powertrains or an antiquated dinosaur with garbage cars making use of old, pollution-friendly tech.

As predicted, the Environmental Protection Agency officially announced its intent to roll back Corporate Average Fuel Economy (CAFE) standards this week. On Monday, EPA head Scott Pruitt indicated his agency would begin the formal regulatory process with the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) to lower the existing MPG rules.

For the most part, Pruitt avoided diving deep into the NHTSA’s past claims of larger vehicles being safer and the manufacturing pitfalls associated with rushing cutting-edge technology to market — two issues we expected to be addressed. Instead, he left the announcement rather basic by stating the Obama-era rules were “not appropriate and should be revised.” The cornerstone of the EPA’s argument is that Americans simply aren’t buying more efficient automobiles, despite their current availability, and automakers have grown concerned with meeting CAFE standards after 2022.

“The Obama administration’s determination was wrong,” Pruitt said in a statement. “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.” Read More >

The National Transportation Safety Board is one of two federal agencies probing the recent fatal Tesla Model X crash in Mountain View, California, and it isn’t too pleased with the automaker for releasing information gathered from the car’s digital log.

Apple engineer Wei Huang died after his Model X slammed into a concrete barrier on the southbound US-101 freeway on March 23rd. The vehicle was operating in Autopilot mode, the company revealed days later. Accompanying Tesla’s blog post were details about the events leading up to the impact, including the claim that Huang didn’t have his hands on the wheel during the six seconds leading up to the crash.

This data release didn’t sit well with the NTSB. Read More >

Back in November, Oklahoma passed a law making it extra illegal to use the left lane on all divided highways for any purpose other than passing. This law is already in effect throughout most of the U.S., but enforcement is tricky and highly dependent on traffic flow. Plenty of overtaking occurs above the posted limit, meaning drivers maintaining that speed often feel justified in staying in the left-most lane.

To clarify, Oklahoma already had a law forbidding motorists from hogging lanes on multi-lane highways. The November edict simply tacked on a fine (typically around $230) and a notice from the highway patrol that it wouldn’t tolerate the behavior anymore. “Basically, in simplest terms is, if you’re not passing a vehicle or overtaking a vehicle and you’re in the left lane, you’re in the wrong lane to drive,” State Trooper Clayton Fredrickson explained last year.  Read More >