But automakers can’t absorb the cost forever and will soon begin to raise new car prices, analysts say.
A deal designed to force compliance with tougher emissions standards is as risk after the Trump administration intervened.
According to two people familiar with the draft, it would eliminate the bedrock scientific finding that greenhouse-gas emissions threaten human life by dangerously warming the planet.
China wants to dominate the market for the cars of the future, and it has set its sights on Brazil’s giant auto market.
For 50 years, automakers have had to increase the fuel efficiency of their vehicles or pay fines. The Republican megabill would set those penalties to $0.
The 7-to-2 decision stressed that it did not address the merits of the dispute, and concerned only whether the producers had standing to sue.
BYD and other companies doubled their share of the car market after the European Union imposed higher tariffs on electric vehicles from China.
For decades, California has been able to adopt its own emissions regulations, effectively setting the bar for carmakers nationally. And for just as long, Republicans have resented the state’s outsize influence.
The measure, passed by the House, would roll back incentives for people to buy electric vehicles and for automakers to make them in the U.S.
In 50 years, California’s authority to set environmental rules that are tougher than national standards had never been challenged by Congress. Until now.