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Automakers drop support for Trump effort against California emissions

WASHINGTON — Toyota, Fiat Chrysler (now known as Stellantis following its merger with Peugeot) and other major automakers said on Tuesday they were joining General Motors in abandoning support for former President Donald Trump's effort to bar California from setting its own zero emission vehicle rules. The automakers, which also included Hyundai, Kia, Mitsubishi, Mazda and Subaru, said in a joint statement they were withdrawing from an ongoing legal challenge to California's emission-setting powers, "in a gesture of good faith and to find a constructive path forward" with President Joe Biden. The automakers, along with the National Automobile Dealers Association, said they were aligned "with the Biden administrationÂ’s goals to achieve year-over-year improvements in fuel economy standards." Nissan in December withdrew from the challenge after GM's decision in November shocked the industry and won praise from Biden. On Monday, the Justice Department asked the U.S. Appeals Court for the District of Columbia to put the California emissions litigation on hold to "ensure due respect for the prerogative of the executive branch to reconsider the policy decisions of a prior administration." Biden has directed agencies to quickly reconsider TrumpÂ’s 2019 decision to revoke CaliforniaÂ’s authority to set its own auto tailpipe emissions standards and require rising numbers of zero-emission vehicles, as well as Trump's national fuel economy rollback. Asked to respond to the automakers' action, White House climate adviser Gina McCarthy said in a statement that "after four years of putting us in reverse, it is time to restart and build a sustainable future, grow domestic manufacturing, and deliver clean cars for America." California Governor Gavin Newsom praised the automakers on Twitter for "dropping your climate-denying, air-polluting, Trump-era lawsuit against CA" and urged them to join the voluntary framework. TALKS WITH BIDEN Separately, an industry trade group on Tuesday proposed to start talks with Biden on revised fuel economy standards that would be higher than Trump-era standards but lower than ones set during the prior Democratic administration. The Trump administration in March finalized a rollback of U.S. Corporate Average Fuel Economy standards to require 1.5% annual increases in efficiency through 2026, well below the 5% yearly boosts under the Obama administration rules it discarded.

2015 Volkswagen Golf: Green Car of the Year?

As you may recall, VW's compact Golf was voted 2015 North American Car of the Year by a jury of 57 veteran automotive journalists (including this one) and named Car of the Year by Motor Trend and Yahoo Autos and Best Car to Buy 2015 by Green Car Reports. "The range of green options in the 2015 Volkswagen Golf range is hard to beat," says Green Car Reports editor John Voelcker. "With more fuel-efficient gasoline engines, a new TDI diesel option that comes close to real-world hybrid mileage levels, and the all-electric VW e-Golf, the 2015 Golf gives buyers a good-better-best menu of options for driving green." The car was also a finalist for Green Car Journal's "Green Car of the Year," but ultimately lost to the BMW i3 EV. When I saw GCJ editor Ron Cogan at last November's Los Angeles Auto Show, he asked me to guess which finalist would win. Based on its efficiency and versatility, I guessed the Golf. He smiled but the next day, he named the i3 the winner. Okay, the technically impressive, carbon-fiber-bodied i3 is a formidable green machine wearing a prestige German label at a semi-affordable ($43,000) price. But it comes in just one (somewhat odd-looking) body style with a choice of all-electric or range-extending electric powertrains, and its EPA-official ranges are 81 miles for the former and just 150 for the latter, costlier version, which totes a tiny (647cc) 34-hp two-cylinder BMW motorbike engine in its tail. By contrast, the 2015 Golf comes in 3- and 5-door hatchback and even more practical Sportwagen body styles and offers a wide range of eager yet fuel-thrifty turbocharged gas and clean-diesel engines, most with a choice of manual or automatic transmission. An all-electric e-Golf, one of the best EVs we've yet driven, is also available in some areas, and that will be followed, VW says, by a hybrid, a plug-in hybrid and even a CNG-powered model. No question this all-new seventh-generation 2015 VW Golf is easily the best ever. A bit larger, roomier, aerodynamically slicker and more fuel efficient than the Gen VI Golf it replaces, it's built on an all-new modular platform and boasts an amazing range of models, powertrains and features.

Automakers face reality of EVs' cost — to jobs, and their bottom line

Related: We obsessively covered the Frankfurt Motor Show — here's our complete coverage FRANKFURT, Germany — European car bosses gathering for the Frankfurt auto show are beginning to address the realities of mass vehicle electrification, and its consequences for jobs and profit, their minds focused by government pledges to outlaw the combustion engine. As the latest such announcement by China added momentum to a push for zero-emissions motoring, Daimler, Volkswagen and PSA Group gave details about their electric programs that could give policymakers some pause. Planned electric Mercedes models will initially be just half as profitable as conventional alternatives, Daimler warned — forcing the group to find savings by outsourcing more component manufacturing, which may in turn threaten German jobs. "In-house production is almost irrelevant to the consumer," Daimler boss Dieter Zetsche told reporters on the eve of the Frankfurt Motor Show, in the midst of a German election campaign in which automotive jobs have loomed large. The company set a target of saving 4 billion euros ($4.8 billion) by 2025 to help fund the cost of its electric cars. "Daimler is the first company to state explicitly how much electric vehicles are going to hurt margins," said Bernstein analyst Max Warburton. "It was brave to go first — but of course it won't be the last." Volkswagen, for its part, said it was seeking new global supplier contracts to source 50 billion euros ($60 billion) of electric car content including batteries, which are not yet manufactured competitively in Europe. "A company like Volkswagen must lead, not follow," Chief Executive Matthias Mueller told reporters. VW diesel emissions-cheating exposed by U.S. regulators in 2015 triggered global public outrage, dozens more investigations into test-rigging by the wider industry and a push by some lawmakers to ban diesel and eventually all engines. TIGHTENING NOOSE Tesla shares jumped nearly 6 percent on Monday after a Chinese minister said it was a question of when, not if, Beijing bans fossil-fuel cars, tightening the noose around the combustion engine. France and Britain have promised its outright abolition by 2040. But PSA, the maker of Peugeots and Citroens, said it was concerned about the risks if consumers were left behind in the rush, and a new generation of battery cars does not sell.