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Trump Takes Action On Auto Industry Standards

March 15, 2017 0 Comments

President Donald Trump has made a decision that could have lasting effects on the automotive industry. President Trump has reportedly made a deal with automakers that will mean a change from the efforts of the Obama administration.

“We are going to insure that any regulations that we have protect and defend your jobs…your factories…we’re going to be fair,” President Trump said during a speech in Michigan.


The Trump administration is making a potential course correction on automotive regulation. It was announced today that EPA would take a year to review standards set forth by the Obama Administration regarding fuel efficiency standards.

During his meeting with auto industry executives, President Trump further stated,”We are re-instituting the midterm review we’re gonna re-institute that review and we’re giving you a voice in a process. We’re going to do some wonderful work with you but you have to come back and you have to give us big numbers in terms of jobs.”

Under the previous Obama administration, automakers were set to have a mandate for 54.4-mpg average fuel economy for new vehicles by the year 2025. Now, automakers will have around a year to communicate with the federal government in regards to the creation of new corporate average fuel economy standards (CAFE).

Also weighing in on the recent developments was Jessica Caldwell, Executive Director of Industry Analysis. In an email to DrivingSales News, Caldwell said in part, “CAFE has always been a delicate balance for automakers, as it essentially forces them to make investment decisions based on regulatory objectives and not market demands… Trump is likely scoring points with the auto executives by promising to rethink these regulations, but he’s making it clear he expects the automakers to return the favor by ramping up investments here in the U.S.”

What is your take on the impact the Trump administration will have on the automotive industry? Do you think the potential CAFE standards changes will prove to be a positive for automotive retail?

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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