The nation is preparing for a showdown on automobile emission standards (G.M., Fiat Chrysler and Toyota Side With Trump on Emissions. New York Times, October 29, 2019: 1, 24). The UUS government wishes to freeze the standard at the current level, California and several other states wish to continue to tighten standards to the levels proposed by the Obama administration. Several automakers decided to work with California to reduce emissions; others were silent.
These silent automobile manufacturers have now come out in support of the current administration’s position: reduced standards and higher levels of pollution.
It is interesting to note that most of the firms supporting higher standards are those firms that already meet the current standard; only Toyota. The firms supporting Trump are those that are failing miserably to meet the current standard:
· Meet Current Automobile emission standards
o Support Trump’s relaxation of standards
§ Toyota
o Support California’s more stringent standards
§ BMW
§ Ford; Ford almost meets the current standard
§ Honda
§ Volkswagen
· Are Failing to Meet Current Automobile emission standards
o Support Trump’s relaxation of standards
§ Fiat Chrysler
§ General Motors
o Support California’s more stringent standards
§ No one
It is sad to see that the Trump administration’s zeal for regulatory roll-back is rewarding those firms that have lagged in developing effective reductions in automobile emissions. It is the firms that have made the necessary investment in pollution control that the world needs to be rewarded.
It will be interesting to see which firms are successful in the market.
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