Highlights:
Trump’s Steel Tariffs Cost Jobs At Automakers. According to Reuters, “While the tariffs failed to boost overall steel employment, economists say they created higher costs for major steel consumers - killing jobs at companies including Detroit-based automakers General Motors Co and Ford Motor Co.” [Reuters, 10/10/20]
Tariffs Had Profound Impact On Automakers Who Went On To Close Plants. According to Reuters, “The tariffs had a profound impact on steel consumers, industry experts say. All three Detroit automakers - General Motors, Ford and Fiat Chrysler Automobiles NV - have closed a plant in Michigan since January 2018, according to Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research. Both General Motors and Ford reported $1 billion each in increased steel cost in 2018. GM declined to comment on the tariffs' impact. A Ford spokeswoman said the automaker faced higher raw material costs in 2018 because it buys 95% of its steel from domestic suppliers. While raw steel prices have since come down, Ford's manufacturing costs are still elevated because of U.S. tariffs on Chinese-made auto parts, she said. Retaliatory tariffs from China have also cut Ford's vehicle exports to that country.” [Reuters, 10/10/20]
September 2023: The United Auto Workers Went On Strike. According to NPR, “A historic strike at the Detroit Three automakers is now underway. For the first time ever, the United Auto Workers union is striking against all Big Three automakers at once, after it failed to clinch a deal on a new contract by the 11:59 p.m. deadline on Thursday.” [NPR News, 9/15/23]
VIDEO: Trump Said There Were "Mixed Emotions" About The UAW Strike. According to a Clinton Township speech via YouTube, “TRUMP: We talk and we keep talking, but we don't want to talk too much. But before we do talk about the current UAW strike that we've been hearing about, and I see people with really mixed emotions." [Clinton Township Speech via YouTube, 9/27/23]
Trump Refused To Say Whether He Supported The 2009 Auto Industry Bailout. According to the Washington Post, “Trump's glancing interest in local politics made it into in a pre-speech press conference. Asked if President Obama showed leadership in the 2008/2009 bailout of the major auto companies, Trump meandered through an answer that left him without a position. ‘You could have let it go, and rebuilt itself, through the free enterprise system,’ said Trump. ‘You could have let it go bankrupt, frankly, and rebuilt itself, and a lot of people felt it should happen. Or you could have done it the way it went. I could have done it either way. Either way would have been acceptable. I think you would have wound up in the same.’” [Washington Post, 8/11/15]
The Bailout Saved The Auto Industry. According to CNN, “On March 30, 2009, newly-elected President Barack Obama announced that the government would provide GM and Chrysler with a lifeline. It was one of the most costly, and least popular bailouts of the time. Taxpayers lost nearly $12 billion on the government’s aid to the two companies. Eventually, however, the bailout allowed both GM and Chrysler to become successful and hire tens of thousands of workers. It also saved suppliers’ jobs.” [CNN, 3/29/19]
Trump Suggested Moving Some Auto Manufacturing Out Of Michigan Into Another State. According to the Detroit News, “Donald Trump is making the future of U.S. auto production a cornerstone of his campaign for the Republican nomination for president. Trump disclosed in an interview with The Detroit News Wednesday that Ford CEO Mark Fields wrote to him explaining the automaker’s planned $2.5 billion investment in Mexico after Trump criticized Ford in June. And Trump suggested one way to stop automakers’ expansion to Mexico is by moving some production out of Michigan to lower-wage states.” [Detroit News, 8/12/15]
Trump Said Automakers Could Shift Production To Areas In Order To Pay Workers Less. According to the Detroit News, “Trump dismissed the lower-wages argument. He said U.S. automakers could shift production away from Michigan to communities where autoworkers would make less. ‘You can go to different parts of the United States and then ultimately you’d do full-circle — you’ll come back to Michigan because those guys are going to want their jobs back even if it is less,’ Trump said. ‘We can do the rotation in the United States — it doesn’t have to be in Mexico.’” [Detroit News, 8/12/15]
Trump Oversaw A Loss Of More Than 18,000 Auto Manufacturing Jobs In Michigan. According to FactCheck.org, “While Trump has made false boasts about auto plants in Michigan, the number of jobs in vehicles and parts manufacturing in the state has dropped under his watch. As of February, before the pandemic shutdowns began, motor vehicle and parts manufacturing jobs had fallen by 2,400 from January 2017, when Trump took office, according to the Bureau of Labor Statistics. As of August, those Michigan jobs stood at 155,800, down 18,400 from the month Trump was inaugurated.” [FactCheck.org, 9/24/20]
Under Trump, GM Announced It Would Close At Least Five Plants. According to MLive, “On the 2016 campaign trail in Warren, Trump pledged ‘you won’t lose one plant’ if he were elected. GM announced last year it would end production at five North American plants.” [MLive, 7/30/19]
March 2017: Trump’s EPA Announced That It Intended To Reconsider Greenhouse Gas Standards For Light-Duty Vehicles Produced For Model Years 2022-2025. According to a notice by the U.S. Environmental Protection Agency, “EPA announces its intention to reconsider the Final Determination of the Mid-Term Evaluation of greenhouse gas (GHG) standards for model year (MY) 2022-2025 light-duty vehicles and to coordinate its reconsideration with the parallel process to be undertaken by the DOT’s NHTSA regarding Corporate Average Fuel Economy (CAFE) standards for cars and light trucks for the same model years.” [U.S. Environmental Protection Agency, 3/13/17]
The Trump Administration Reduced The Standards By Nearly 32%, More Than The Automakers Had Asked For. According to Vox, “Car companies disagreed. They complained that these standards were too ambitious, that customers preferred larger crossover SUVs to small, fuel-efficient sedans, and that the midterm evaluation was rushed. So when Trump took office, several automakers and the oil industry petitioned to have the EPA re-assess the regulation. But car companies got more than they bargained for when the EPA announced instead that it was going to hold fuel economy standards at 2020 levels, which would set average fuel economy at 37 miles per gallon. The EPA justified this weaker rule, known as the SAFE rule, on safety grounds. They used the tortured reasoning that newer cars are safer than old ones and that tough fuel-economy rules make new cars more expensive. By weakening fuel-efficiency regulations, drivers can upgrade to newer, safer cars more easily. But leaked emails showed that analysts inside the EPA determined that the revisions would actually lead to more deaths.” [Vox, 7/30/19]
August 2018: The EPA And NHTSA Released And Published Revised Proposed GHG And Fuel Economy Standards. According to the Harvard Environmental & Energy Law Program Regulatory Rollback Tracker, “Aug. 2, 2018 EPA and NHTSA release new proposed standards for greenhouse gas emissions and fuel economy. The agencies propose maintaining the CAFE and CO2 standards applicable in model year 2020 for model years 2021-2026. The agencies propose withdrawing the permission granted to California to set its own greenhouse gas emissions standards, which a dozen other states also use. Aug. 24, 2018 The Federal Register publishes the Trump administration’s proposed fuel economy and greenhouse gas emissions standards for cars and light trucks. The comment period is open through October 23, 2018, and people can comment on a wide range of alternatives, including retaining existing CO2 standards and CAFE standards.” [Harvard Environmental And Energy Law Program Regulatory Rollback Tracker , Accessed 7/16/20]
June 2019: Ford, GM, Toyota, Volvo, And 13 Additional Auto Companies Sent Trump A Letter Asking For Rules That Complied With California’s Standards. According to the Harvard Environmental & Energy Law Program Regulatory Rollback Tracker, “June 6, 2019 Seventeen auto companies, including Ford, General Motors, Toyota and Volvo, send a letter to President Trump requesting vehicle rules that are supported by California to avoid the uncertainty that would result if the federal government adopts rules that will undoubtedly be challenged by California and the section 177 states that follow California’s standards. The same group also sent a letter to California Governor Gavin Newsom, stating that the industry would like to compromise with final rules between the Obama-era standards and the standards proposed under the Trump administration.” [Harvard Environmental And Energy Law Program Regulatory Rollback Tracker , Accessed 7/16/20]
July 2019: Ford, Volkswagen, Honda, And BMW Agreed To Stricter Fuel Economy Standards Than The Trump Administration Had Imposed. According to Vox, “First reported by the Washington Post, the California Air Resources Board (CARB) alongside Ford Motor Company, Volkswagen AG, Honda Motor Company Ltd., and BMW of North America agreed to increase vehicle fuel economy of their fleets 3.7 percent year over year between model year 2022 and model year 2026. Meeting this goal with just fuel-efficiency improvements would require car companies to average 51 miles per gallon by 2026 across all of their offerings. But the recent agreement lets automakers meet this target in other ways too, like selling more electric cars and plug-in hybrids. And while the agreement is only with California, the benchmarks are determined based on a car company’s national fleet rather than just within the state, which gives carmakers more flexibility. […] Faced with the prospect of different sets of rules across the country with changes hinging on the uncertain outcome of long, drawn-out litigation, some car companies decided to establish a backchannel with California to see if they could reach an agreement of their own. ‘They came to us, actually,’ said David Clegern, a spokesperson for CARB. ‘My understanding is that they basically were to the point where they needed some kind of signal to provide some certainty for their planning.’ The big concern for companies is that cars take years to develop. The sedans, coupes, crossovers, and hatchbacks of the next decade are already on the drawing board, but they can’t go much further without designers knowing the mileage rules that will be in place several years in advance. That’s why coming to an agreement with one of the strictest states for emissions in the country right now works in favor of manufacturers. […] Another factor is that these companies have a global presence. In other parts of the world, vehicles are facing more stringent fuel-efficiency regulations as concerns about health and climate change mount. Many car companies would rather build their offerings to similar standards than precisely tailoring their vehicles to different emissions standards in different countries. There is also a growing appetite for electric vehicles and stricter fuel-economy rules give companies a stronger incentive to promote zero-emission cars and trucks. The recent deal between CARB and the four automakers has the added assurance that fuel economy rules won’t suddenly ramp up. ‘If there is a Democratic administration that comes in 2020 and wants to reinstate the Obama rules, in California we will hold them to this deal,’ Clegern said.” [Vox, 7/30/19]
Trump Expressed Frustration After Automakers Rejected His Call To Roll Back Obama-Emission Standards. According to Vanity Fair, “President Donald Trump raged against the auto industry Wednesday, as car manufacturers continue to balk at his administration's planned rollback of Obama-era fuel emission standards. The Trump administration has long planned to stop Obama's policy, but California, which receives a waiver to enact its own fuel policies, responded by enacting tougher emission standards of its own. Now, automakers are caught in the middle between the two competing standards—but more are taking California's side, including four of the world's largest automakers. And, predictably, Trump isn't thrilled.” [Vanity Fair, 8/21/19]
Trump Called Automaker Executives “Foolish Executives,” Saying Henry Ford And Alfred P. Sloan Were “Rolling Over At The Weakness Of Current Car Company Executives.” According to Vanity Fair, “After deriding the ‘politically correct Automobile Companies’ and their ‘foolish executives’ earlier on Twitter Wednesday, Trump returned Wednesday evening to once again whine about his failed policy, this time by invoking automobile pioneer Henry Ford. ‘The Legendary Henry Ford and Alfred P. Sloan, the Founders of Ford Motor Company and General Motors, are ‘rolling over’ at the weakness of current car company executives willing to spend more money on a car that is not as safe or good, and cost $3,000 more to consumers. Crazy!’ Trump tweeted.” [Vanity Fair, 8/21/19]
September 2019: Trump’s Justice Department Launched An Antitrust Investigation Into The Automakers Involved In The Higher Efficiency Deal With California. According to NPR, “The Trump administration says a deal between California and four carmakers to improve fuel efficiency may be illegal. The Justice Department has also launched a probe to see whether it violates antitrust laws. Together, the moves raise the stakes in a months-long standoff over efforts to weaken a key Obama-era climate rule. The administration is moving to roll back fuel economy standards despite resistance from some in the industry. In July, BMW, Ford, Honda and Volkswagen reached a deal with the state to keep improving fuel efficiency even if federal standards are weakened. The antitrust probe seeks to challenge that deal. T.R. Reid, a spokesperson for Ford, said in a statement that the company ‘will cooperate with respect to any inquiry.’ Also at stake is a decades-old waiver that lets California set its own, stricter emissions standards, which a dozen other states also follow. On Friday, the EPA and Department of Transportation sent the California Air Resources Board a two-page notice warning that its deal with the four automakers ‘appears to be inconsistent with Federal law.’ It said that under the Clean Air Act, only the federal government has authority to set tailpipe pollution standards.” [NPR, 9/6/19]
Experts Said Trump’s Administration Changes Would Disrupt Automaker Production Plan. According to Time, “Carmakers have already made major changes to their factories in order to meet the guidelines. Experts say that the Trump administration’s changes will disrupt the companies’ production plans, which are years in the making, and make it hard to plan beyond what’s likely to be a protracted legal battle between the administration and blue states – and the 2020 election, says Professor Peter Adriaens of the University of Michigan. ‘They’re going to be thrown into disarray. The question is where are all these investments going to go?’ says Adriaens.” [Time, 9/18/19]
The Motor And Equipment Manufacturers Association Was Concerned That Trump’s Policies Could Harm The Automotive Industries’ Competitiveness. According to Time, “The Motor & Equipment Manufacturers Association (MEMA), which represents manufacturers of vehicle components, said in statement on Wednesday that it is concerned that Trump’s policy could harm the automobile industry’s competitiveness. MEMA said that the revocation of the waiver will lead to ‘lengthy litigation’ and ‘will contribute to on-going regulatory uncertainty, which could have damaging effects on industry’s ability to invest and plan for the future and impact industry’s ability to grow jobs.’ MEMA noted that it has urged the National Highway Traffic Safety Administration (NHTSA) and the EPA to come to an agreement with California.” [Time, 9/18/19]
September 2019: The Trump Administration Revoked The Waiver Allowing California To Set Its Own Car Emissions Standards. According to NPR, “The Trump administration has been picking fights with California over environmental regulations recently. Last week the administration said it will revoke a waiver that allows California to set stricter car emission standards. A senior EPA official said the two actions were not linked and that California is the focus now because it represents the largest share of backlogged plans. Even though other states have similar backlogs, the administration has not sent letters to them.” [NPR, 9/24/19]
March 31, 2020: EPA And NHTSA Released Final Rule For Passenger Cars And Light Trucks With Revised CAFÉ And GHG Standards. According to the Harvard Environmental & Energy Law Program Regulatory Rollback Tracker, “March 31, 2020 EPA and NHTSA release a final rule, the Safer Affordable Fuel–Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks. This final rule contains the revised CAFE and GHG standards which increase in stringency 1.5% each year, down from 5% each year under the Obama-era standards. It is published in the Federal Register on April 30, 2020 and effective on June 29, 2020.” [Harvard – EELP, Accessed 7/16/20]
June 29, 2020: The Final CAFE And GHG Rule Went Into Effect. According to the Harvard Environmental & Energy Law Program Regulatory Rollback Tracker, “March 31, 2020 EPA and NHTSA release a final rule, the Safer Affordable Fuel–Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks. This final rule contains the revised CAFE and GHG standards which increase in stringency 1.5% each year, down from 5% each year under the Obama-era standards. It is published in the Federal Register on April 30, 2020 and effective on June 29, 2020.” [Harvard – EELP, Accessed 7/16/20]
Trump Reduced Requirements To Below Where The Auto Industry Was On Track For Without Any Regulation. According to the Guardian, “The Obama administration required auto companies to make vehicles 4.7% more efficient each year. The Trump administration initially wanted to freeze any progress on fuel efficiency past 2020. But its final rule, written by the EPA and the Department of Transportation, sets an improvement rate of 1.5% per year – or an industry average of 40.4 miles per gallon by 2026. That’s far less than the 2.4% per year by which the industry has said it will increase standards without any regulation. [Guardian, 3/31/20]
2021: The Biden Administration Moved To Withdraw Trump’s California Emissions Rollback. According to Reuters, “President Joe Biden's administration said on Thursday it is moving to withdraw a Trump White House rule that sought to bar states from setting vehicle emissions rules or zero-emission vehicle mandates. The National Highway Traffic Safety Administration (NHTSA) said it was proposing to revoke the Trump rule issued in September 2019 that declared that federal law pre-empted state action on vehicle emissions. The move removes ‘a potential barrier to states implementing tough greenhouse gas and zero emission vehicle regulations,’ the NHTSA said in a statement. After formal publication, the matter will be open for comment for 30 days and then revocation could be finalized. About two dozen U.S. states filed suit to block a pair of Trump actions that sought to remove California from vehicle emissions regulations. Those court challenges are pending.” [Reuters, 4/22/21]