Possible fight between Trump, California has automakers worried

A group of major automakers on Thursday backed a compromise on vehicle emissions aimed at heading off a confrontation between California and the Trump administration. The automakers warned that the lack of a deal could lead to “an extended period of litigation and instability.” In a letter to California Governor Gavin Newsom signed by 17 major automakers including General Motors Co, Toyota Motor Corp and Volkswagen AG, the companies urged a compromise “midway” between the Obama-era standards that require annual decreases of about five percent in emissions and the Trump administration’s proposal that would freeze vehicle emissions requirements at 2020 levels through 2026. In February, the Trump administration ended talks with California over federal plans to roll back fuel economy rules, setting the stage for what could be a lengthy legal fight over the state’s ability to regulate greenhouse gas emissions. White House spokesman Judd Deere said on Thursday that California had “failed to put forward a productive alternative,” adding that the Trump administration was “moving forward to finalise a rule with the goal of promoting safer, cleaner, and more affordable vehicles.” California did not immediately comment on Thursday. California Air Resources Board chair Mary Nichols warned that the increasing need to fight climate change “might lead to an outright ban on internal combustion engines.” She later told California news website Calmatters.org that no ban was imminent and that her warning was part of draft remarks released by the agency.