On a Monday meeting of business executives and President Donald Trump, CEO of Tesla Motors Elon Musk raised the question of tax on carbon emissions. Namely, he’s pressuring The White House to adopt this tariff. A senior White House official said Musk floated the idea of a carbon tax at the meeting but got little or no support among the executives at the White House, signaling that Trump’s conservative political orbit remains tepid on the issue.
Exxon Mobil has lobbied on Capitol Hill for a revenue-neutral carbon tax to take the place of an array of environmental regulations that raise the cost of fossil fuels. A carbon tax could be imposed on oil, gas and coal companies, or on gasoline or homeowners’ power bills. To make it revenue-neutral and to avoid an undue burden on the poor, money raised by carbon taxes could be returned to taxpayers, possibly through periodic dividends. The issue divides the oil industry, with several other large integrated companies also favoring a carbon tax, even though it is being fought by many independent producers that lack pipeline and refining operations.
FCA planning production of three new Jeeps and a Ram pickup in the U.S.
Despite the emissions investigation, FCA CEO Sergio Marchionne made a good start with Capitol Hill. His $1 billion plan to produce in the U.S. three new Jeeps and a Ram pickup now made in Mexico won plaudits from President Donald Trump as he pressures the auto industry to manufacture north of the border.
Trump, at a meeting with Marchionne and other CEOs at the White House earlier this week pledged to ease off on environmental rules and taxes and offered incentives to draw new carmaking plants to the U.S. FCA, which has benefited from growing demand for larger cars, including its Ram pickup trucks and Jeep SUVs, stands to gain more than its peers from looser environmental regulation.
Fiat’s willingness to cooperate with Trump is “clear,” and the carmaker will continue to look at an infrastructure shift to the U.S., Marchionne said on a call with analysts. The CEO said he didn’t discuss a scrapped plan to merge with General Motors with the president, as he focuses on trimming debt and boosting earnings.
“I don’t want this house to be disturbed by anything other than the accomplishment of the 2018 plan,” said Marchionne. Still, a merger between GM and Fiat would create the world’s biggest automaker and could follow Trump’s “argument of ‘America first.'”
Marchionne said he feels comfortable about the outlook for the U.S. market for the next 24 months. He said he’s willing to consider strengthening FCA’s U.S. manufacturing base even further if the economic environment is conducive to do so — including taxes, and incentives.
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