While auto companies would love to get the government off their back, they’re trying to avoid a costly and confusing fight just when they’ve got their hands full with a fundamental shift in the industry.
Before siding with California, the group of four extracted some concessions from the California Air Resources Board . Automakers would have another year, until 2026, to meet the requirements. They’d get additional compliance credits based on electric-vehicle sales, and would no longer have to account for carbon emissions by power plants that generate EV electricity.
Ford’s motives aren’t so obvious. According to the Union of Concerned Scientists, it ranks near the bottom of the industry in fuel efficiency. And its California-coalition share is only 28%. But it is by far the leader in fuel-efficient pickup trucks. It reduced engine size while adding turbocharged horsepower to its EcoBoost engine line. In 2015, Ford replaced the F-150 steel body with a high-strength aluminum alloy, shaving off 700 pounds. In 2017, it introduced a 10-speed automatic transmission; that allowed it to shrink the remaining V8 truck engine. Last year, Ford extended the 10-speed transmission across the product line, and this year it came out with a diesel engine that gets 30 mpg.
At one time, automakers had to retrofit many of their cars to meet California standards while selling more-polluting vehicles in the rest of the country. That’s unlikely to happen even if the U.S. market is broken in two. More likely, the companies would have to adjust their product mix to meet regulations by adjusting prices in different states to manipulate higher or lower demand.
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