The Trump administration says repealing a key Obama-era climate policy will reduce the cost of buying a new vehicle by an average of $2,400: a figure highlighted by the White House and the Environmental Protection Agency (EPA).
According to the New York Post, the move rescinds the 2009 “endangerment finding,” which allowed the EPA to regulate greenhouse gas emissions from vehicles beginning with model year 2012.
What is the policy being repealed?
Introduced under former President Barack Obama, the endangerment finding enabled the EPA to measure and limit emissions of carbon dioxide, methane and other greenhouse gases from cars and engines.
President Donald Trump and EPA Administrator Lee Zeldin announced the repeal this week, arguing that the rule imposed heavy compliance burdens on manufacturers.
At the White House, Zeldin said “manufacturers will no longer be burdened by measuring, compiling or reporting greenhouse gas emissions for vehicles and engines.”
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How would this save $2,400 per vehicle?
The administration argues that eliminating emissions compliance requirements will significantly lower production costs for automakers.
{{/usCountry}}The administration argues that eliminating emissions compliance requirements will significantly lower production costs for automakers.
{{/usCountry}}The EPA said avoided “regulatory compliance costs” and the “avoided costs of purchasing equipment related to [electric vehicles]” would contribute to lower vehicle prices.
Steve Milloy, a former Trump EPA transition adviser and senior fellow at the Energy & Environment Legal Institute, told the New York Post: “Because of this move, gas prices will remain low and car prices will decline.”
He added, “Lower gas prices and lower vehicle prices will ripple through the economy for decades to come.”
The administration also said that start-stop engine features introduced under the emissions framework would no longer be required: a change some industry figures say reduces manufacturing complexity and cost.
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Industry response and caution
A spokesperson for Ford Motor Company said: “We appreciate the work of President Trump and Administrator Zeldin to address the imbalance between current emissions standards and customer choice.”
However, industry leaders cautioned that price reductions may not be immediate. Tim Pohanka, vice president of Pohanka Automotive Group, told the New York Post: “Would we see a price reduction of $2,400 right away on a car? Probably not.”
Automotive analyst Lauren Fix added, “On every car brand, it’s going to be slightly different,” though she described the move overall as “a win, making cars more affordable.”