As the Trump administration prepares to roll back emissions regulations that push cars to be cleaner and more fuel efficient, it may also set the stage for a political battle that could create a rift in the U.S. auto industry. After several months of comment and a possible setback from the 35-day government shutdown last month, the newly finalized fuel economy rules are due from the administration by March 31. However, following the publication of the proposed changes, California and eighteen other states announced that if less-stringent fuel economy rules are enacted, they will sue the government — which may lead to a period of prolonged regulatory uncertainty.
Automakers have witnessed a resurgence in interest for trucks and SUVs as gasoline prices continue to hover around $2 per gallon in many areas of the country.
Manufacturing industry groups are tracking a number of key policy issues this year that could have a variety of implications on their West Michigan members.
Automakers’ challenge in meeting regulatory requirements for Corporate Average Fuel Economy has two aspects: the technology side and the market side of the issue.