US President Donald Trump’s administration has announced that it is repealing a key Obama-era climate policy which is expected to reduce the cost of buying a new car by $2,400.
The 2009 “endangerment finding” allowed the Environmental Protection Agency (EPA) to regulate greenhouse gas emissions from vehicles beginning with model year 2012, according to New York Post.
‘A disastrous policy’
Trump had termed this policy as a “disastrous” one, saying it damaged the American auto industry and drove up prices for American consumers. The decision determined that six greenhouse gases, including carbon dioxide and methane, pose a threat to public health under the Clean Air Act, triggering a wave of new environmental regulations.
How will Americans save $2,400 per vehicle?
The Trump administration has argued that eliminating emissions compliance requirements will significantly lower production costs for automakers.
The EPA said avoided “regulatory compliance costs” and the “avoided costs of purchasing equipment related to [electric vehicles]” would contribute to lower vehicle prices.
Steve Milloy, a former Trump EPA transition adviser and senior fellow at the Energy & Environment Legal Institute, told the New York Post: “Because of this move, gas prices will remain low and car prices will decline.”
He added, “Lower gas prices and lower vehicle prices will ripple through the economy for decades to come.”
‘Price reductions may not be immediate’
Industry voices have however narrated a cautionary tale. Tm Pohanka, vice president of Pohanka Automotive Group, told the New York Post: “Would we see a price reduction of $2,400 right away on a car? Probably not.”
Automotive analyst Lauren Fix added, “On every car brand, it’s going to be slightly different,” though she described the move overall as “a win, making cars more affordable.”
A spokesperson for Ford Motor Company, however, lauded Trump’s efforts. “We appreciate the work of President Trump and Administrator Zeldin to address the imbalance between current emissions standards and customer choice,” the spokesperson said.