Ford Motor Company (NYSE:F) was on the receiving end of a tweet sent out by President Donald Trump through which he criticized the automotive manufacturer for building expensive vehicles that are less safe.
Trump weighed in on automotive companies on Wednesday through the Tweet, with a particular focus on Ford for failing to support his plan. POTUS described automotive industry executives as “stupid” and believes that the founders of those companies would be disappointed with the weak executives currently controlling those firms.
Henry Ford would be very disappointed if he saw his modern-day descendants wanting to build a much more expensive car, that is far less safe and doesn’t work as well, because execs don’t want to fight California regulators. Car companies should know….
— Donald J. Trump (@realDonaldTrump) August 21, 2019
Ford, Volkswagen, BMW, and Honda Motors recently signed a voluntary agreement with California State which subjects them to more stringent fuel economy requirements. President Trump believes that the deal denies the U.S the right to implement its own standards for combatting climate change.
California’s new fuel-efficiency regulations are tighter than those proposed by President Trump but they are not as strict as those imposed during Obama’s administration. Companies that subscribe to the new emission standards will likely hike the prices of their vehicles to cover the extra costs. However, automotive manufacturers expect buyers not to worry because the additional costs will be offset through fuel savings over long-term use.
The automotive manufacturers that have signed the California deal have expressed their interest in contributing to less pollution. This also reflects on the global efforts to slow global warming. However, President Trump is a known non-believer when it comes to global warming and this played a role in the exit of the U.S from the Paris Agreement.
Trump has also been promoting his deal, a move that might change Ford’s competition. Just a month ago he invited some of the automotive companies to the White House. They mainly included firms that did not subscribe to the California fuel efficiency deal and some of the firms include General Motors Company (NYSE: GM), Toyota Motor Corp (NYSE: TM), and Fiat Chrysler Automobiles NV (NYSE: FCAU).
Regulators are already evaluating the future of the automotive industry and it looks like the industry is shifting towards electric vehicles. Ford has been working on a lineup of electric pickups and multiple other industry players are also going down the same road.