Automakers, California Cut Deal On Fuel Efficiency

Editor's note: Due to a scheduling issue, this segment did not air on July 29, 2019 as planned.

With Meghna Chakrabarti

Major automakers strike a deal with California to produce more fuel efficient cars — zooming past the Trump administration's rollback.

Joann Muller, reporter covering the future of transportation for Axios. She writes the twice-weekly newsletter "Axios Autonomous Vehicles." (@JoannMuller)

The Hill: "Automakers rebuff Trump, strike fuel efficiency deal with California" — "Automakers have struck a deal with California that would circumvent the Trump administration's pending freeze of fuel efficiency standards.

"Four automakers agreed Thursday to produce vehicles that could average 50 mpg by 2026, undercutting efforts by the Trump administration to freeze them at 37 mpg.

"The proposed rollback from the Trump administration has set up a clash with California which, for decades, has been allowed to create its own stricter standard that has in turn been adopted by other states.

"The deal between the California Air Resources Board and Honda, Volkswagen, Ford and BMW of North America gives the companies an extra year to meet standards that are nearly as ambitious as those developed under former President Obama, designed to end the dueling federal and state fuel standards.

"The four automakers that signed on to the deal represent just 30 percent of the market, but that could grow as other manufacturers dissatisfied with the federal-state spat join the deal--something California is advocating."

Stefano Kotsonis produced this segment for broadcast.