Trump administration says scrapping keys Climate policy in the Obama era The cost of buying a new car will be reduced by an average of $2,400: White House and the Environmental Protection Agency (EPA).
The move repeals a 2009 “hazard finding” that allowed the EPA to regulate greenhouse gas emissions from vehicles starting with the 2012 model year, the New York Post reported.
What is the cancellation policy?
The hazard finding, proposed by former President Barack Obama, allows the EPA to measure and limit emissions of carbon dioxide, methane and other greenhouse gases from cars and engines.
president Donald Trump EPA Administrator Lee Zeldin announced the repeal of the rule this week, arguing that it places a heavy compliance burden on manufacturers.
“Manufacturers will no longer have the burden of measuring, compiling or reporting greenhouse gas emissions from vehicles and engines,” Zeldin said at the White House.
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How to save $2,400 per vehicle?
The government believes that removing emissions compliance requirements will significantly reduce production costs for automakers.
The EPA said “regulatory compliance costs” were avoided and “costs associated with purchasing associated equipment were avoided.” [electric vehicles]”It will help reduce car prices.
“Gas prices will stay low and car prices will go down because of this move,” Steve Milloy, a former Trump EPA transition adviser and senior fellow at the Energy and Environmental Law Institute, told the New York Post.
He added that “lower gas prices and lower car prices will impact the economy for decades to come.”
The government also said the start-stop engine function introduced under the emissions framework is no longer needed: a change that some industry figures say reduces manufacturing complexity and costs.
Also read: Trump withdraws U.S. from dozens of international U.N. entities, including key climate ones
Industry reactions and warnings
“We appreciate the work President Trump and Commissioner Zeldin have done to address the imbalance between current emissions standards and customer choice,” a Ford Motor Company spokesperson said.
However, industry leaders warned that price cuts may not happen immediately. Tim Pohanka, vice president of Pohanka Automotive Group, told the New York Post: “Are we going to see $2,400 off the price of the car immediately? Probably not.”
Auto analyst Lauren Fix added that “every car brand will be slightly different,” but she described the move overall as “a win to make cars more affordable.”
