The Trump administration says that repealing Obama-era climate policies would reduce the average cost of buying a new car by $2,400: a figure highlighted by the White House and the Environmental Protection Agency (EPA).
Environmental Protection Agency (EPA) Administrator Lee Zeldin speaks with US President Donald Trump at the White House in Washington, DC. (Reuters)According to the New York Post, the move repeals a 2009 “endangerment finding,” which allowed the EPA to regulate greenhouse gas emissions from vehicles starting with the 2012 model year.
What policies are being repealed?Introduced under former President Barack Obama, the hazard finding enables the EPA to measure and limit emissions of carbon dioxide, methane and other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 placed a heavy compliance burden 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 it save $2,400 per car?The administration argues that eliminating emissions compliance requirements would significantly reduce production costs for automakers.
EPA said that “regulatory compliance costs” are avoided and “related equipment purchase costs are avoided [electric vehicles]” will contribute to lower car prices.
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Steve Milloy, a former Trump EPA transition adviser and senior fellow at the Energy and Environment Legal Institute, told the New York Post: “Because of this move, gas prices will stay low and car prices will go down.”
“Lower gas prices and lower car prices will ripple through the economy for decades to come,” he added.
The administration also said the start-stop engine features introduced under the emissions framework would no longer be required: a change that some industry figures say reduces manufacturing complexity and costs.
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Industry responses and warningsA Ford Motor Company spokesman said: “We appreciate the work of President Trump and Administrator Zeldin in addressing the imbalance between current emissions standards and consumer preferences.”
However, industry leaders caution that the price reduction may not be immediate. Tim Pohanka, vice president of Pohanka Automotive Group, told the New York Post: “Will we see a $2,400 price drop on a car right now? Probably not.”
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“With every car brand, it’s going to be a little bit different,” added automotive analyst Lauren Fix, though she described the move as “a win, making cars more affordable.”
