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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.

U.S., South Korea strike a new trade deal

WASHINGTON — The United States and South Korea have reached agreement on a new trade pact, the White House said on Tuesday. "We have come to an agreement in principle, and we expect to roll out specific details on that very soon," White House spokeswoman Sarah Sanders told a briefing. Her comments were the Trump administration's first confirmation that the two sides had reached an agreement in trade talks covering revisions to the U.S. South Korean Trade Agreement (KORUS) and a South Korean exemption from new U.S. metals tariffs. Seoul on Monday announced a deal to limit exports to the U.S. of South Korean steel, while extending high U.S. tariffs on any possible South Korean pickup trucks and increasing U.S. automakers' access to the Korean market. But details of the agreement have not yet been released by the U.S. Trade Representative's office, which led the negotiations for the United States after President Donald Trump last year called the 6-year-old bilateral pact a "horrible deal" that had doubled the U.S. trade deficit with South Korea since 2012. The deal is expected to permanently exempt South Korea from Trump's tariffs of 25 percent on steel and 10 percent on aluminum, but South Korea will have to reduce its steel exports to the United States by 30 percent from its average over the past three years to about 2.68 million tons. South Korea was the third largest steel exporter to the United States last year after Canada and Brazil. The agreement also was expected to double South Korea's import quota for cars meeting U.S. safety standards — not necessarily Korean standards — to 50,000 per manufacturer per year from 25,000 previously. The big challenge now would be getting unimpressed Korean consumers to buy them. The 25 percent U.S. tariff for pickup trucks, which was due to begin a phase-out starting in 2019, would be extended for another 20 years, according to South Korean officials. This would virtually ensure that any pickup truck contemplated by Korean automakers Hyundai or Kia for the U.S. market would be built in the United States.Reporting by Ayesha Rascoe and David LawderRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: Reuters Government/Legal Hyundai Kia

Kia Trail'ster Concept brings traction for the Soul in Chicago

Kia teased its hybrid all-wheel drive Trail'ster concept prior to the 2015 Chicago Auto Show debut, but the company kept some of this off-road Soul's biggest features a secret. Designed both to go off the beaten path and drive efficiently in the city, the company's designers in California added 2.5-inches of extra ground clearance and aluminum skid plates to give the hatchback a more rugged appearance. Drivers can also let the weather into the cabin thanks to a retractable canvas roof. However, the Trail'ster's most intriguing feature is its drivetrain. With a platform still based on the production Soul, up front there's a 1.6-liter turbocharged four-cylinder with stop/start churning out 185 horsepower and 185 pound-feet of torque through a six-speed automatic gearbox. The gas engine exclusively runs the front axle; at the rear there's an electric motor with 35 hp and 100 lb-ft with a 1.2-kWh lithium-ion polymer battery under the cargo floor providing assistance. The whole system produces a total output of 220 hp and 285 lb-ft of twist, and the Kia claims, the concept could even run two or three miles purely on electric power. There's no physical connection between the internal combustion engine at the front and electric in the rear. Under low-throttle situations, the electric motor runs exclusively, but under most driving conditions, the all-wheel drive system provides extra traction and a bit more acceleration. Kia claims that if it put this layout into production it would offer 25-30 percent better city fuel economy and a 5-10 percent improvement on the highway compared to the current 2.0-liter powertrain in the Soul. That works about to about 30 miles per gallon city and 34 mpg highway, based on the maximum figures. The automaker isn't saying anything official yet, but it's at least hinting that a system like this could end up in the Soul one day. "The Trail'ster concept is a near-future look at how the production Kia Soul would logically evolve into an AWD-capable version that's built to escape the city streets and roam into the mountain wilderness," Tom Kearns, chief designer at the Kia Design Center of America, said in the model's announcement.