U.S. government shutdown threatens rollout of new car models - automakers
The partial U.S. government shutdown is threatening to delay the roll-out of new vehicle models in the United States by stalling required certifications from the Environmental Protection Agency, automakers said.
The shutdown, at 34 days the longest in history, has left over 800,000 federal agency workers without pay and had an impact on everything from access to national parks to airline security screening to the release of economic data.
Some 95 percent of EPA staff has been furloughed, including those at the lab in Ann Arbor, Michigan, responsible for verifying emissions data for new automotive models to ensure they comply with clean air laws.
Ford Motor Co
"As the shutdown continues, these certification delays will affect U.S. vehicle production. Consumers will also not have access to the latest technologies and sales could decline as a result," industry trade group Global Automakers told Reuters.
The EPA declined to comment.
Former acting administrator of the EPA, Stanley Meiburg, noted the agency`s certification process was central to discovering Volkswagen`s past efforts to cheat on emissions.
Automakers tend to seek certifications well in advance of releasing them to the market - meaning a delayed certification does not always impact the roll-out schedule. But the issue could become more serious if the shutdown lingers for much longer, Meiburg said.
"Any disruptions to this part of the process will disrupt the entire supply chain," he said.
Republican President Donald Trump has refused to sign any legislation to fund an array of government agencies unless it includes $5.7 billion for his proposed wall on the U.S. border with Mexico.
Democrats argue that a wall is costly, and there are better ways to shore up national security and curb illegal immigration.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.