Meeting of the President Donald Trump and the executives of the biggest companies in the field of automotive industry held at the White House on January 24. still raises the interest of the professional public.
Ford Motor Co. CEO Mark Fields asked President Donald Trump to reconsider emissions and mileage standards that had been finalized by during the final days of the Obama administration. The new set of rules require automakers to double the average fuel efficiency of the US fleet to at least 50 miles per gallon by 2025 in line with the administration’s climate and emissions goals. US automakers had criticized the rules, noting that they could make vehicles more expensive, which would in turn impact jobs.
Mark Fields claiming 1 million jobs are at risk if the regulations aren’t relaxed
Fields is claiming that “various studies” say 1 million jobs are at risk if the regulations aren’t relaxed. But independent industry analysts and environmental groups argue that figure is unrealistic and that Fields cherry-picked a worst-case scenario from a dubious report.
The study does say more than 1 million jobs could be lost, but its criticized for overlooking a number of factors. “It’s a particular case taken with a particular set of assumptions that ends in an extreme result,” said Alan Baum, principal of automotive forecasting firm Baum & Associates.
The 1 million figure is one of nine scenarios the study examines.
Another one, for example, says the industry could gain about 144,000 jobs. And of the potential 1 million jobs lost, just 322,000 would be in the automotive sector. The remaining 805,000 are indirectly related to car production.
Other studies have come to much different conclusions. The EPA has estimated the cost to add fuel-saving technologies will range from $894 to $1,565 per vehicle, depending on the time frame, and a study Baum and others conducted found that the cost would be about $1,900 per vehicle, starting from a 2010 baseline.
The White House meeting with the group, which also includes leaders of the Cleveland Clinic, PepsiCo and IBM, is set to cover tax and trade, regulatory relief and infrastructure.
Republican leaders say tax reform is a top priority, but they have acknowledged it could take until the end of 2017 or longer to finish legislation. “If I were a company, I’d be worried about tax reform,” said Bernie Williams, chief investment officer at USAA Investment Solutions, in San Antonio.