Four automakers reach voluntary emissions deal with California

The group includes BMW, Ford, Honda and Volkswagen.

A group of major automakers including BMW, Ford, Honda, and Volkswagen have reached a voluntary emissions-reduction agreement with California regulators.

The Trump Administration has promised to roll back a series of ever-tighter emissions regulations established under Obama, setting up a battle with California over the state's right to set its own emissions laws. The showdown has created uncertainty for automakers, potentially fracturing the future of harmonized regulations across the country.

The voluntary plan is said to be a compromise between the Obama and Trump proposals, calling for an increase in fuel efficiency at an annual rate of 3.7 percent from the 2022 through 2026 model years. Credits worth up to one percent of the increase would be granted for selling electrified vehicles.

"Ensuring that America's vehicles are efficient, safe and affordable is a priority for us all," the automakers said in a joint statement. "A 50-state solution has always been our preferred path forward and we understand that any deal involves compromise."

California Air Resources Board chair Mary Nichols opined that the companies "didn't want to face the expense, distraction and the bad publicity that comes from being part of a rollback on clean cars."