Trump Tells Car Executives He's Still Open to Talks With California

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The Corporate Average Fuel Economy or CAFE standards would require carmakers to reach an average of 54.5 miles per gallon (23 kilometers per liter) across all models they produce by 2025, in an effort to significantly reduce oil consumption and the greenhouse gases linked to climate change. The people spoke on condition of anonymity to describe the private discussions.

President Trump and the head of the Environmental Protection Agency Scott Pruitt met with the heads dozen automakers, including General Motors CEO Mary Barra, Ford Motor Co. The state has its own tailpipe rules that are aligned with federal targets through 2025, and is developing new standards through 2030. California and several other states have already sued to challenge to a would-be rollback by the Trump administration, a move announced in fiery terms by Democratic Governor Jerry Brown.

The Alliance of Automobile Manufacturers and the Association of Global Automakers issued a joint statement after the meeting saying they appreciated Trump's passion for the industry.

That topic earned Marchionne praise from Trump, who called him "my favorite" executive for moving production of the Ram pickup from Saltillo, Mexico, to the company's plant in Warren, Michigan.

The president says they'll discuss the "manufacturing of millions of more cars within the United States, for MI, for OH, for Pennsylvania" and states like SC and North Carolina.

President Trump prodded top auto industry executives Friday to make more cars and trucks in the US, promising that his tough trade policies also would make it easier to sell those vehicles overseas.

Trump says he's working to rewrite the North American Free Trade Agreement but "has never been a NAFTA fan".

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"Mexico and Canada, look, they don't like to lose the golden goose".

Asked if the deal might adversely affect the industry, Trump said, "NAFTA has been a awful deal, we're renegotiating it now, we'll see what happens".

Bigs form every major automaker were seated around the table.

"I am optimistic that the president can find a means to preserve a national program that drives continuous improvement in vehicle efficiency and, at the same time, allows us to build vehicles customers want, at prices they can afford", Fiat Chrysler Chief Executive Officer Sergio Marchionne said in statement afterward.

When the single national standard was adopted six years ago, cars, which get better mileage than trucks and SUVs, made up just under half of USA new vehicle sales. Reducing the standards, they say, will increase pollution and raise gasoline prices at the pump.

The industry also notes it faces rising fuel efficacy standards around the globe and is spending countless dollars to introduce new battery powered vehicles in the coming years.

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