Ford backs new US rules to cut vehicle emissions

WASHINGTON, (Reuters) – Ford Motor Co said on Monday it backs the Biden administration’s moves to dramatically cut vehicle emissions through 2032, rejecting Republican arguments the new climate rules are bad for business.

The second largest U.S. automaker said it supports the Environmental Protection Agency’s regulations announced in March to cut passenger vehicle fleetwide tailpipe emissions by nearly 50% by 2032 over 2027 levels.

“Complying with emissions regulations requires lengthy advance planning, and Ford has taken steps to transform its business to ensure compliance with stricter emissions standards,” the Dearborn-based automaker said.

It said it welcomed the regulatory stability that the Multi-Pollutant Rule will provide, preventing the “possibility of flip-flopping or changing standards.”

Former President Donald Trump, who is seeking a return to the White House, has vowed to reverse the Biden rules that would boost electric vehicles.

Earlier, a trade group representing General Motors, Toyota Motor, Volkswagen, Ford and nearly all other major automakers on Monday said it supported two key aspects of the rule.

The Alliance for Automotive Innovation filed in support of the EPA in including electric vehicles in fleetwide averaging of emissions and excluding upstream emissions from compliance calculations, but did not weigh in on the entire rule or the legality of the standards.

Last month, 25 Republican-led states sued the EPA arguing the new regulations saying they are unlawful and unworkable.

The auto alliance, which also includes Stellantis, Honda Motor and Hyundai Motor, said the two key provisions it is backing “are essential if vehicle manufacturers are to have any possibility of demonstrating compliance with the GHG reduction targets.”

Republican state officials argue the administration wants to transform the American passenger vehicle market through strict rules and force automakers to shift production to EVs.

A group of 22 states led by California back the EPA’s tailpipe emissions, saying they could be harmed if the EPA did not require future reductions in harmful vehicle emissions.

The regulations are among the most significant environmental rules implemented under President Joe Biden, who has made tackling climate change a pillar of his presidency. The EPA has forecast that between 35% and 56% of new vehicles sold between 2030 and 2032 would be electric.

The EPA said the final rules announced in March will cut emissions by 49% by 2032 over 2026 levels compared with 56% under its previous plan. EPA chief Michael Regan said the rule imposed no mandate on manufacturers to adopt electric vehicles.

Reporting by David Shepardson; Editing by Leslie Adler and Stephen Coates