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Jeep's parent company not joining in on call for cleaner cars in USGabrielle Coppola 08:13, Jun 19th, 2019 When a group of 17 of the world's largest carmakers sent a letter to US President Donald Trump in June asking him to compromise with California on its tough vehicle-emission standards, one company was notably absent from the list of signatories: Fiat Chrysler Automobiles (FCA).
That holdout stance is not atypical for the maker, known for its Jeep SUVs, big pickup trucks and Italian sports cars.
FCA's public comments hew closer to the Trump administration's reverse shift on Obama-era regulations.
FCA US LLCFCA, famous for its Jeep models, is feeling the eco-pressure: it ranked last among 13 makers for fuel economy in 2017.
"They are looking out for their own best interest, as every company and every person does at the end of the day," says Brett Smith, director of propulsion technology and energy infrastructure at the nonprofit Center for Automotive Research.
General Motors has suggested a national mandate for electric vehicles in 2021 in its written comments to regulators.
FCA US LLCFCA agrees with Trump that cost of cleaner cars could prevent people from buying them, causing an eco-backfire.
Honda Motor has called for "strong 2025 targets" and said it did not support a Trump administration proposal to freeze fuel economy standards.
Ford's top executives have said they "support increasing clean-car standards through 2025 and are not asking for a rollback."
In its written comments submitted to regulators last year, FCA said it agrees with one of the Trump administration's central arguments: stricter fuel-efficiency mandates drive up new vehicle prices, keeping older, dirtier and less-safe cars on the road longer.
FCA US LLCHybrid and plug-in vehicles are still just 1.5 per cent of the US market. This isn't one.
It said this could undermine the very air quality and safety benefits the Environmental Protection Agency and National Highway Traffic Safety Administration rules aim to deliver.
The EPA and NHTSA are preparing a final rule now that could differ from the post-2020 freeze the agencies recommended last year.
"Our support for one national programme and the mid-term evaluation remains unchanged," FCA said in an emailed statement last week after its peers' letter became public.
FCA US LLCFiat 500e: FCA has complained publically about having to sell an EV at a loss just to meet Californian regulations.
"It was made clear when we were one of just two automakers to testify last September at hearings held by the EPA and NHTSA."
When the Trump administration proposed stripping California of its authority to limit tailpipe greenhouse-gas emissions last August, Fiat Chrysler made one of the industry's strongest public endorsements of the federal government's right to do so.
"It remains our hope that conflicts over preemption will be avoided by an agreement," the maker wrote in comments submitted to the government last October.
"However, in the absence of such an agreement, FCA agrees that the law gives the federal government the authority to preempt state standards that are directly related to fuel economy."
The Trump administration in February terminated months of talks between federal regulators and California officials about a common standard. Carmakers have urged the two sides to reach an agreement to avert a prolonged legal battle with California, but the White House has rejected that appeal.
A dozen other states adhere to California's emissions rules - a bloc that accounts for more than a third of US auto sales.
According to market research firm Edmunds, FCA's model lineup has the lowest average fuel economy among the six biggest makers. But almost every major manufacturer is boosting production of higher-emission SUVs and trucks for the US market.
The industry acted in unison urging the Obama administration to adjust fuel economy and cried foul when the EPA in 2016 determined no changes were needed, months earlier than expected.
Makers quickly appealed to a newly elected Trump early in 2017 for relief. The plea for a compromise between California and federal regulators reflects a desire to avoid costs from a split standard and the potential for years of uncertainty caused by a courtroom battle over the rules.
"It's important for them to communicate through the general public that yes, in a way, they very much do care about the environment, but they also understand they have a market to serve and to try to sell to," Smith said.
Under chief executive officer Mike Manley, who took over last July, Fiat Chrysler has ramped up plans to electrify its lineup, in part to stay competitive in China and Europe where emissions standards are tougher. The carmaker still stands to benefit the most from Trump's proposed freeze, according to Alan Baum, an independent analyst.
"They're way behind, by design, on electrics and hybrids," Baum said. "To the extent there's any improvement or required improvement in fuel economy, that's really tough for them."
The Italian-American company has been a laggard even by industry standards.
It ranked last among 13 car companies for both fuel economy and carbon emissions in the EPA's evaluation of 2017 model-year sales.
Its late CEO Sergio Marchionne publicly griped about having to sell a money-losing battery electric vehicle in California to meet that state's more stringent emissions standards.
The company has pointed out that demand for low-emissions models remains muted in much of the country, with hybrid and plug-in electric vehicles accounting for just 1.5 per cent of US vehicle sales through July of last year, according to IHS estimates.
"The final rule must be based on the market realities of today," Fiat Chrysler said in its written testimony on emissions-policy revisions.
The Washington Posthttps://www.stuff.co.nz/motoring/news/1 ... cars-in-us
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