While Trump made several big promises during his run for the White House, one of the biggest was a blanket repeal of any and all regulations ushered in by the Obama administration affecting big energy and the environment. Although the rhetoric was initially met with open arms, it now looks as though Trump’s idea of sweeping change is mismatched with corporate interests, including those of the auto industry.
According to a recent report from Axios, the big makes are now backpedalling on their support for thorough deregulation, instead favoring a milder approach: “The auto industry has lobbied the Trump administration to redo a review of Obama-era fuel efficiency standards, but they don’t support throwing out the standards altogether. Top industry executives have also urged the administration not to revoke a waiver for California to issue more aggressive standards,” says Axios. The reason? According to our friends over at Axios, who spoke with Therese Langer, Transportation Program Director at the American Council for an Energy-Efficient Economy, Trump’s proposed deregulation could create industry-wide instability. While sweeping changes might offer a short-term boost, it could also create long-term uncertainty if it’s not permanent. And in an industry where product cycles take years to play out, a clear picture of the future is necessary for success.
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Regulation: bad! Deregulation: good!
While easy to understand, this black and white approach to politics isn’t always accurate. Which is why it may comes as a surprise that big energy is tapering its support on the policy changes Trump outlined during his presidential campaign.
That said, this isn’t a total about face – it appears as though the auto industry is still in favor of relaxed fuel efficiency standards. However, total deregulation would likely create chaos, and the result would not be good for the big players. Unpredictability is hard to manage, and as the Trump presidency continues on, it looks as though corporate interests are still waiting to see where we’ll be when the dust finally settles.