The Trump Administration and the EPA officials have scrapped all further talks with California and canceled the $929 million in federal funds for a California high-speed rail project.
California's Governor has responded that this is in response to California leading a 16 state coalition challenge to President Trump's national emergency to take funds from the defense department and apply it to building a wall from the Gulf of Mexico to the Pacific Ocean.
California has already filed suit to block the Trump administration proposal to roll back federal fuel economy targets for 2022-2025.
CARB Chair Mary Nichols is on record that they are willing to work with the auto industry in giving more flexibility to comply with the greenhouse gas limits. This came as the White house administration instructed the EPA to break off talks before Christmas and have not responded to any suggested areas of compromise by California and the 19 states they are representing nor the auto industry suggestions for compromise.
While FCA declined to comment, GM and the Alliance for Automobile Manufacturers did not respond to a request for comment. Ford has stated they are very disappointed in the failure of continued talks. Joe Hinrichs, Ford's president of global operations said in a statement: "The auto industry needs regulatory certainty, not protracted litigation."
The auto industry is on record as opposing freezing the emissions / fuel efficiency standards to 2020 levels but also want relief from the roughly 5 percent annual carbon reduction targets for all vehicle classes fuel efficiency.
Ford is launching an investigation into its own emissions and fuel economy certification process according to a statement released by the company. The issue was brought to light back in September when a number of employees reported concerns through Ford's internal Speak Up channel.
The concern surrounds Road Load, a vehicle-specific resistance level used in dynamometer testing. Too much or too little resistance will alter the results of the emissions and fuel economy. Road load is determined through engineering estimates that are then validated on the track. Ford is evaluating changes to the road load determination process.
The company is quick to point out that none of the potential concerns involve the use of defeat devices and that no determination has been made on the need to restate Ford's fuel economy or emissions labels.
Ford has hired an outside firm to conduct an investigation into Ford's current processes and has shared their findings with both the EPA and CARB.
The first vehicle to be re-evaluated is the 2019 Ford Ranger with others to follow.