California signs deal with 4 automakers to raise gas mileage

DETROIT (AP) — A person briefed on the matter says four major automakers have reached a secret deal with California to increase gas mileage and greenhouse gas emissions standards.

Ford, BMW, Honda and Volkswagen are parties to the deal with the California Air Resources Board that bypasses the Trump Administration’s plan to freeze the standards at 2021 levels.

The person says that under the deal, fuel economy and corresponding greenhouse gas standards would rise 3.7% per year from 2022 to 2026. The person didn’t want to be identified because details of the deal haven’t been formally released.

The Trump administration had proposed freezing fleetwide new-vehicle fuel economy at 36 miles per gallon.

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