Ford Agreement with California Resources Board

Today Ford announced an agreement with the California Air Resources Board (CARB) and three other automakers that will provide greater regulatory certainty regarding fuel economy standards for the next several years. The agreement provides a framework for a 50-state solution for regulating greenhouse gas emissions through 2026 with increasing year-over-year standards.  It also provides the appropriate relief needed to ensure the mix, availability and affordability of Ford and Lincoln vehicles that consumers want to own.

Key elements of the compromise agreement:

·  Ensures 50-state compliance solution by allowing Ford to voluntarily meet both federal and state requirements with a single national fleet, avoiding a patchwork of regulations that would increase program costs and limit product availability in certain states

· Provides a reasonable change from regulations developed in 2011 by the Obama administration that would (on average) increase fuel economy standards by over 5% per year.  These standards are no longer aligned with market realities and could require dealers to sell certain vehicles in volumes beyond consumer demand

·  Revises year over year fuel economy increases to 2.7% and provides a path for achieving an additional 1% increase through flexibilities that promote zero emission technologies

·  Avoids litigation over a bifurcated regulatory program resulting from a lack of an agreement between the federal government and California over One National Program

·  Promotes regulatory stability and reduces more CO2 than by complying with two separate GHG standards, while protecting the environment and consumer affordability

“We continue to support One National Program with increasing stringency year over year, while also keeping vehicles affordable for our customers and providing us with regulatory certainty,” said Joe Hinrichs, Ford’s president, Automotive. “As we look to the future, we remain committed to investing more than $11 billion in electrification and support critical investments in new technologies that are valued by our customers.”

Click here for early media coverage on the agreement.

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