How could exit from Paris climate accord affect auto industry?

How could exit from Paris climate accord affect auto industry?

Reaction to President Trumpês announcement that he would withdraw the U.S. from the Paris climate accord was swift in the auto industry, as it was in other sectors.

Tesla CEO Elon Musk had said before the announcement was made that he would withdraw from the two presidential advisory councils he was on if Trump decided to exit the agreement, and Musk quickly did so. General Motors said CEO Mary Barra would remain on the presidentês Strategy and Policy Forum –because it provides a seat at an important table to contribute to a constructive dialogue about key policy issues.”

Both GM and Ford issued statements reaffirming their commitment to the environment. GM said ,–Our position on climate change has not changed.” Ford said, –We believe climate change is real, and remain deeply committed to reducing greenhouse gas emissions in our vehicles and our facilities.” That is the reason, Ford said, that it is adding 13 new electrified vehicles to its lineup.

Longtime Detroit Free Press automotive columnist Mark Phelan pointed out that U.S. automakers will need to make low-emissions vehicles for international markets, and it wouldnêt make sense for them to make different models for the U.S.

The main way the U.S. was going to meet the emissions targets it created for itself for the Paris accord was through the Clean Power Plan designed under the Obama administration. That plan, which Trump canceled in an executive order, focused more on power plants.

But a large part of U.S. greenhouse gases is also created by the transportation sector. Trump has already reopened the midterm review of the fuel economy standards set under President Obama. NADA and automakers strongly opposed the Obama standards when they were approved in January just before Trump took office. The auto industry says those standards, set in 2012, do not take into account the shift in consumer buying patterns toward SUVs and CUVs.

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