Trump Revamps Emissions Standards

Issue #173

For years, we’ve heard about aiming for more mpgs. Now, it’s the opposite, all for cheaper cars. However, some are questioning whether it will work. We explain.

Market News

• Can you use your phone while at a red light? This article explains why it’s a grey area. 

• Here’s the new Toyota supercar! It looks awesome. 

• Will automotive prices keep going up? This article analyzes why it could happen. 

• A new tariff reduction has many automakers smiling, but mostly GM. Here’s why. 

• Here’s why Nissan isn’t doing normal hybrids and why it could win.

Safety and Recalls

• Ford recalls nearly 109,000 vehicles because a cover could detach. 

• The Takata airbag recall crisis still exists and millions drive with deadly devices. 

• Rivian recalls 35,000 vehicles after a safety probe found irregularities. 

Car Culture

• MotorWeek legend John Davis makes a case for the DeTomaso Pantera as one of the greatest cars of all time. 

• Here’s why power output dropped dramatically in the 70s. It’s more complex than just emissions. 

• Someone managed to pay off a car loan with free GM Rewards points. Don’t rush, GM closed the loophole already. 

• This Lotus Esprit Restomod makes perfect sense. 

• Tesla won’t scald you if you text while on autopilot. The law doesn’t agree.

Video Of The Week

This guy turned a vintage car into a modern classic. It’s a beautiful video. 

In The Know

Will Fewer MPGs Truly Mean Cheaper Cars?

President Donald Trump returned from his trip around Asia with one obsession: Kei cars. We're not talking about big SUVs or sports cars, nor the Chrysler K-car from the 80s.

Instead, he wants diminutive Japanese vehicles to whizz about the city. However, he doesn’t necessarily want those powered by 660 cc engines and small in size. 

What’s clear is that he authorized respective leaders to start production for the US market of smaller, affordable cars (NOT kei cars, specifically). 

However, even that might be a challenge, as this article explains, because it could entail a radical change in automakers' production processes. 

Kei cars must comply with strict Japanese laws, including emissions regulations. In fact, it's a crucial aspect, as Japan designed them to emit less in urban driving. Most of them average 50-70 mpg, as summarized here. 

So, it comes as a surprise that the President wants smaller vehicles in the US, even as he unveiled his plan to reduce emission requirements for American automakers. This Autoblog article explains that the plan involves requiring cars to achieve lower miles per gallon. 

The plan involves directly changing the CAFE requirements, which have been in place since 1975, to reduce emissions. They've gone through several changes, as this isn't the first time they've been rolled back. You can read more about the plan here. 

Ultimately, the plan is to reduce fuel economy from 50.1 mpg (from the Biden era, which was already less than the Obama-era 54.5 mpg) to 34.5 mpg by 2031. 

However, relaxing fuel economy standards isn't the end goal in itself. The belief is that by doing so, cars will become cheaper. 

The approach makes sense on the surface. Retooling the entire process to achieve a fleet average of 50 mpg is expensive.

Automakers highlight that by reducing requirements, they can offer more options to consumers. The promise, as this article shows, is that American families will save up to $109 billion. 

However, not everyone agrees. This article explains that the new plan overlooks a critical aspect of car prices: tariffs.

Ultimately, a $1,000 drop will ease the price of some vehicles, but not all of them. Meanwhile, tariffs have affected many different brands. 

This plan comes at a critical time. November results showed that American buyers are focusing on cheap cars. Let's not forget that fuel economy is a vital part of a vehicle's overall cost. 

At the same time, this article shows how Ford CEO Jim Farley promises that air quality won't suffer, while also providing options for buyers. However, some disagree, arguing that vehicles that emit more polluting gases will directly affect quality. 

And, buried deep within the plan is one aspect that caught my eye. Part of the plan is to reclassify SUVs as passenger vehicles rather than light trucks. 

Why does this matter? Well, the SUV is the most sold vehicle in the US. In the past, because it was sold in large numbers, there was a "light truck penalty," under which automakers had to pay fines for selling many of them. With this change, automakers can breathe a sigh of relief, and the station wagon might make a comeback, as this article explains. 

Ultimately, the plan isn't yet in place. So, there's a lot of speculation; meanwhile, one thing's clear: everyone wants a cheaper new car. It's the road to getting one that changes.