It is rare for companies to voluntarily subject themselves to more stringent regulation, but a growing number of automakers seem to be doing just that.
Source: Volkswagen |
Ford Motor Co. Honda Motor Co. Ltd. Volkswagen AG and Bayerische Motoren Werke AG have all rejected a proposal from U.S. President Donald Trump to freeze Obama-era fuel economy standards and instead agreed to align themselves with more demanding standards set by the state of California. It looks likely that other automakers will follow suit.
Despite the potential for short-term financial relief at a time when every penny really does count, car manufacturers seem to be taking a longer view on this matter. Many are already deep in the process of transitioning to hybrid and electronic battery technology. Furthermore, stricter regulations are already in place in Europe, which begs the question of whether bifurcation of standards is viable — or indeed worthwhile — as car production becomes more standardized.
For many, the journey to tougher emissions standards is inevitable. However, Trump made clear in an Aug. 21 tweet that he does not see things quite the same way.
"Companies would lower the average price of a car to consumers by more than $3000, while at the same time making the cars substantially safer. Engines would run smoother. Very little impact on the environment! Foolish executives!"
Chart of the week: Appetite returns for restaurant IPOs

Automotive
Automakers caught between Trump, Calif. fuel economy plans
The U.S. president criticized automakers in a tweet for not standing by his plan as four major automakers backed California's tougher standards.
Timeline: US investigation of corruption at Fiat Chrysler, UAW
The investigation, spanning more than two years, has resulted in eight guilty verdicts. A recent twist involves a connection to General Motors.
Walmart sues Tesla over solar-sparked fires, demands removal of all arrays
Alleging seven fires sparked by solar panels inherited by Tesla Inc. through its acquisition of SolarCity Corp., the retail giant is seeking damages and the removal of arrays from about 240 U.S. locations.
Amid fire concerns, Tesla defends lithium-ion battery safety
"It is important to recognize how far energy storage technology and the related safety codes and standards have come over the last several years as the energy storage industry has grown exponentially," a Tesla official said.
July auto sales mixed in major markets
New vehicle sales in the U.S. and Japan increased in July as China experienced a decline.
Retail
Amazon's HQ2 in Virginia could become a tech hub in coming years
The presence of the other companies in the area could strengthen the e-commerce giant's talent pipeline in Arlington, Va.
Macron: France will 'do away with' digital tax once global policy is created
The new 3% digital tax is expected to place a significant administrative burden on tech companies including Amazon, Facebook and Google.
August retail market: Retail sales jump; 5 companies go bankrupt
U.S. retail and food services sales reached $523.51 billion in July, helped by a strong increase in online purchases.
Food, Beverage & Tobacco
Coffee, sushi break restaurant IPO fast
The IPOs of Luckin Coffee and Kura Sushi USA earlier in 2019 ended a three-year hiatus of restaurant listings on U.S. markets.
Meituan Dianping posts 1st profitable quarter since IPO
The Chinese food delivery platform reported its first profitable quarter on the back of favorable weather but warned that delivery costs are likely to rise again in the second half of the year.
Consumer Edge is a weekly collection of critical developments across the automotive; retail; and food, beverage, and tobacco industries. Drawing on exclusive analysis and value-added content from the Consumer News team at S&P Global Market Intelligence, it is published every Thursday.

