Major car firms urge Trump to reverse Obama fuel regulations
Several of the world's largest car-makers have written a letter to US President Donald Trump, urging him to reevaluate legislation introduced by the Obama administration which will restrict fuel usage by 2025.
Fiat Chrysler Automobiles N.V.
$24.74
04:55 29/04/24
Ford Motor Co.
$12.71
04:55 29/04/24
General Motors Corp
n/a
04:55 29/04/24
The letter was signed last week by car companies from the US and abroad, including General Motors, Ford, Fiat Chrysler, Volkswagen, Toyota and Honda.
The firms claimed that thousands of jobs would be put at risk if the new strict regulations were locked in by 2025.
Under the policy, vehicles would have to run 54.5 miles per gallon or better in the next eight years, significantly reducing passengers' fuel costs.
However, despite the rise of electric cars in recent years, the claim goes that if Trump were to continue the policy it would cost the car industry as much as $200bn.
In the letter, which was seen by Reuters, the companies praised Trump's "personal focus on steps to strengthen the economy in the United States and your commitment to jobs in our sector."
Were the new rules to be introduced, the letter said, it would "threaten future production levels, putting hundreds of thousands and perhaps as many as a million jobs at risk."
Trump's relationship with the car industry has been rocky so far, after he criticised some in the sector for moving production of cars to Mexico.
The so-called "Big Three" in the US of Ford, Fiat Chrysler and General Motors have all felt the wrath of Trump, most of which has been via pithy swipes on Twitter.
Ford scrapped plans to build a $1.6bn plant in the country in favour of a $700m investment in Michigan, while Fiat announced plans to spend $1bn to create 2,000 jobs in Michigan and Ohio.