Less carbon, more electric vehicles: Automakers prepare for potential Biden win

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Automakers are gearing up for tough new vehicle emissions rules and policies favoring electric vehicles if Democratic presidential candidate Joe ...

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WASHINGTON/NEW YORK: Automakers are gearing up for tough new vehicle emissions rules and policies favouring electric vehicles if Democratic presidential candidate Joe Biden wins the White House.

Automakers could also face sharply higher penalties for failing to meet fuel-efficiency requirements. The Trump administration rolled back those penalties, which the industry said saved at least US$1 billion in annual compliance costs, but a federal appeals court in August reversed the administration action.

Now, the industry is divided. Ford Motor, Honda Motor, Volkswagen AG and others struck a compromise deal with California on emissions requirements, while General Motors, Toyota Motor and Fiat Chrysler Automobiles NV sided with Trump in an effort to freeze out California and roll back emissions requirements.

GM in 2019 drew the ire of Trump for its decision to close an Ohio car assembly plant as part of a larger plan to shut down four North American factories and cut 15,000 jobs. Trump eventually took credit for GM selling the plant to an electric pickup truck company and promising to invest US$700 million in the battleground state.

Dingell added if automakers made an emissions proposal it would be seen as a"floor" for negotiations,"so I think it's got to come out from the environmentalist community and the unions working together". California wants to ban all gasoline-powered passenger vehicles by 2035 and on Friday a New Jersey state environmental agency recommended the state ensure all passenger vehicles sold by 2035 are electric to meet emissions goals.

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