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Automakers want to stop the EPA's fuel economy rules change, and why that's a shortsighted move

With a Trump Administration looming, the EPA moved quickly after the election to propose finalizing future fuel economy rules last week. The auto industry doesn't like that (surprise), and has started making moves to stop the EPA. Ford CEO Mark Fields said he wanted to lobby Trump to lower the standards, and now the Auto Alliance, a manufacturer group, is saying it will join the fight against cleaner cars. The Alliance represents 12 automakers: BMW, Fiat Chrysler, Ford, GM, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, VW, and Volvo. Gloria Bergquist, a spokesperson for the Alliance, told Automotive News that the "EPA's sudden and controversial move to propose auto regulations eight months early - even after Congress warned agencies about taking such steps while political appointees were packing their bags - calls out for congressional action to pause this rulemaking until a thoughtful policy review can occur." The EPA was going to consider public comments through April 2017, but then said it would move the deadline to the end of December. That means that it can finalize the rules before President Obama leaves office. The director of public affairs for the Consumer Federation of America, Jack Gillis, said on a conference call with reporters last week when the EPA originally announced its decision that it is unlikely that President Trump will be able to roll back these changes. Gillis also said on the same call that any attempt by the automakers to prevent these changes would be history repeating itself. "These are the same companies that fought airbags, and now promoting the fact that every car has multiple airbags," he said. "These are the same companies that fought the crash-test program, and now are promoting the crash-test ratings published by the government. So, it's clear that they're misperceiving the needs of the American consumer." There are more reasons the Allliance's pushback is flawed. Carol Lee Rawn, the transportation program director for Ceres, said on that call that the automotive industry is a global one, and many automakers are moving to global platforms to help them meet strict fuel economy rules around the world.

2015 Volvo XC90

The new XC90 isn't just about the new XC90 - it's as much about the new generation of Volvos that will result.
Around the turn of the millennium, Volvo seemed like the perfect automaker to make a crossover. It had, after all, already established for itself a reputation for building all-wheel-drive wagons for transporting families in safety and comfort. But while its competitors marched one by one into the luxury utility market, Volvo held out. That was, anyway, until the debut of the original XC90 in 2002. And it's never looked back since.

Geely and Renault joint venture will develop internal combustion and hybrid tech

China's Geely Automobile Holdings and French car maker Renault SA on Tuesday said they will invest up to 7 billion euros ($7.71 billion) in a new equally held joint venture to develop gasoline engines and hybrid technology for automobiles. The JV is aimed at manufacturing more efficient internal combustion engines and hybrid systems at a time when the focus of much of the automobile industry has been on the capital-intensive transition to purely electric vehicles. "We are pleased to be embarking on this journey to become a global leader in hybrid technologies, providing low-emission solutions for automakers around the world," said Eric Li, Geely Holding Group chairman. The new company will employ 19,000 people at 17 engine plants and five research and development hubs, Renault said. At launch, it is expected to supply to multiple industrial customers including Volvo, Proton, Nissan, Mitsubishi Motors, and PUNCH Torino. The JV aims to have an annual production capacity of up to five million internal combustion, hybrid and plug-in hybrid engines and transmissions, Renault added. Reuters reported in March that the new venture will see 15 billion euros ($16.53 billion) in annual revenue. Saudi Aramco, which signed a letter of intent with Renault and Geely in March, is evaluating a strategic investment in the new company, Renault said. The Saudi oil producer has been involved in advanced discussions to take a stake of up to 20% in the JV, sources said earlier this year. Big oil firms have worked with automakers to develop sustainable fuels and hydrogen engines in recent years. But a deal here would make Aramco the first major oil producer to invest in the car business. The joint venture is expected to be launched in the second half of 2023. Earnings/Financials Green Mitsubishi Nissan Volvo Renault