Ford CEO Told Trump Fuel Economy Regs Jeopardize 1 Million Jobs

Ford CEO Mark Fields told President Donald Trump that roughly 1 million jobs in the U.S. are at risk due to U.S. fuel economy regulations.

According to Bloomberg, Field’s estimation is based on his belief that U.S. Corporate Average Fuel Economy (CAFE) mandates that don’t align accordingly to what’s going on the in the market.

Despite his concerns, the report indicates that Fields, along with General Motors’ CEO Mary Barra and Sergio Marchionne of Fiat Chrysler Automobile didn’t ask Trump to eliminate fuel-economy standards during their meeting at the White House earlier this month. Instead, the leaders and Trump focused on ways to ensure that various sets of government regulations are taking consumer demand into account, Bloomberg reports.

“We think having one national standard on fuel economy is really important,” said Fields at the National Automotive Dealers Association convention in New Orleans, La. Fields went on to say that jobs “could be at risk if we’re not given some level of flexibility on that – aligning it to market reality,” citing studies that the CEO didn’t disclose to the outlet.

Last December, Fields voiced his concerns over the automaker manufacturing fuel-efficient vehicles – hybrids, plug-in hybrids, and all-electric cars – that consumers simply aren’t purchasing.

“In 2008, there were 12 electrified vehicles offered in the US market and it represented 2.3 percent of the industry,” Fields stated in an interview with Bloomberg last year. “Fast forward to 2016, there’s 55 models, and year to date it’s 2.8 percent.”

While it’s anyone’s guess as to what happens next, The Verge reports that Fields, during an earnings call last week, said the meeting with Trump also included discussing the possibility of a national fuel standard.

SEE ALSO: EPA Finalizes 2025 Fuel Economy Rules Before Trump Enters Office

Before Trump was sworn in, the Obama administration finalized a new set of emissions rules that would force automakers to double corporate average fuel efficiency of new vehicles to at least “50 mpg” by 2025 – which amounts to high 30s on the window sticker.

With Trump looking to increase jobs in the U.S. and automakers like Ford that recently canceled plans for a new plant in Mexico agreeing to follow his rules, getting the new administration to alter the emissions regulations is a possibility.

Bloomberg, The Verge


More Hybrid News...