Published: Sat, May 12, 2018
Global News | By Blake Casey

Trump tells CEOs he wants more cars built in US

Trump tells CEOs he wants more cars built in US

The people spoke on condition of anonymity to describe the private discussions. Such a fight could create two different mileage standards in the USA, forcing automakers to engineer and produce two versions of each of their vehicle models and driving up costs. Trump's administration is expected to unveil this month or two in June.

The chief executives of standard Motors, Ford, Fiat-Chrysler, along side senior US executives from Toyota, Volkswagen, Hyundai, Nissan, Honda, BMW and Daimler satisfied with Trump, as did the executives of two auto commerce groups.

The president met Friday with 10 auto industry executives to discuss the standards, and agreed to have Transportation Secretary Elaine Chao and Environmental Protection Agency Administrator Scott Pruitt handle the talks with California officials, according to two people briefed on the meeting. Automakers maintain that one of the positive results of NAFTA is increased overall production and more U.S.jobs as a result of the flexibility to lower parts costs amid integrated manufacturing.

Ultimately, the meeting ended with no announcements about possible roll backs of the current 54.5 mpg by 2025 standard. Among their chief concerns was preserving a de facto national standard for fuel economy by keeping California aligned with federal regulations. The state has its own tailpipe rules that are aligned with federal targets through 2025, and is developing new standards through 2030. Together they make up about 40 percent of USA new-vehicle sales.

Democrats and environmental urges aim to aggressively challenge the Trump administration's plans to weaken the vehicle or truck rules touted by Democratic previous President barackobama's administration as one of its biggest actions to combat climate change by lowering planet-warming emissions. Leaks about the Trump EPA plan already have provoked a suit from California and 16 other states.

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The White House meeting comes as trade officials from the Canada, Mexico and the United States race the clock to reach a deal on a revised NAFTA but are hung up on Washington's demands to increase the US-made components in vehicles that receive duty free status.

As the auto executives introduced themselves, the president joked to Sergio Marchionne, CEO of Fiat Chrysler, that "right now he's my favorite man in the room" because he's moving a plant from Mexico to MI. The meeting came as the administration has been holding extensive negotiations with Mexico and Canada on a rewrite of the North American Free Trade Agreement, which the auto industry is watching warily. He adds, "We'll see if we can make it reasonable".

Auto makers have called NAFTA a victory, letting them incorporate production throughout united states and create production aggressive with Asia and Europe, and have noticed the growth in auto production within the past two decades with the sale inplace.

"I am optimistic that the president can find a means to preserve a national program that drives continuous improvement in vehicle efficiency and, at the same time, allows us to build vehicles customers want, at prices they can afford", Fiat Chrysler Chief Executive Officer Sergio Marchionne said in statement afterward.

Mr. Trump's directive at the meeting grants a reprieve to automakers, who lobbied for a relaxation of rules aimed at cutting tailpipe emissions of carbon dioxide - a major contributor to global warming - but in recent weeks became increasingly nervous that the zealousness of the proposed rollbacks would provoke a battle with California.

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