The Trump administration has been working hard to convince automakers and other manufacturers to ditch incentives that the Obama administration provided them in exchange, including $1 billion in cash payments that were previously tied to vehicle sales and billions in rebated tax credits.
That’s because, according to an administration official, “The incentives are not being paid for by the automakers, they’re being paid by the government.”
It’s unclear whether the Trump government will pursue a similar move in its push to scrap the incentive payments to automakers.
The Obama administration gave the companies $1,000 in cash incentives and $100 in tax credits in exchange with which they could buy cars in 2018 and 2019.
But as of mid-November, the incentive amounts were being phased out, according the Department of Energy’s Office of the Inspector General.
The Trump government, which has been pushing to scrap those incentives, has repeatedly told automakers that it’s time to make that transition.
And the White House has said that its goal is to eliminate the incentive payouts in 2020.
However, a report from the Center for Automotive Research released Tuesday shows that automakers and others may be willing to negotiate with the administration to scrap their incentives as well, at least in some cases.
That report, authored by two former auto industry officials, said that the incentives could be replaced with other, less costly options that would still be eligible for the incentives.
The report, which examined more than 1,500 contracts and deals over the last decade, found that companies could make a variety of alternative payment arrangements, including renegotiating the incentives with the government to lower their payments.
But if the incentives are eliminated in 2020, the report said, automakers could still benefit from the incentives for a longer time.
The companies could reduce incentives to the tune of $100 billion over the next two years, the analysis found.
“The incentive system is not sustainable,” said Scott Anderson, an economist at the Washington, D.C.-based Center for Auto Research.
“It’s an unsustainable system, and it needs to be changed.
It’s not going to be fixed overnight.”
The report noted that some automakers have already started to negotiate alternative payments.
For example, the California-based Honda Motor Co. is looking at alternatives to rebates to make up for the $100 million in incentives that it will receive from 2019.
Honda said last month that it is negotiating with the U.S. government to reduce its rebate to the current level of $25,000 for 2019 and $40,000 next year.
In that deal, Honda is also considering the possibility of shifting the incentives from a “fiscal cliff” year to a fiscal year in which companies would receive $5,000 incentives for every vehicle sold in the U, and $25 incentives for each car sold in California.
Honda will also make payments to all of its North American customers through 2021, including California.
But the California auto industry is already under increasing pressure to meet a January 2019 deadline for complying with the new fuel-efficiency standards.
A federal judge on Wednesday ruled that the automaker was not entitled to a reduction in the amount of rebates it is entitled to under the federal fuel-economy standards.
That ruling was a blow to Honda, which had argued that its rebate was sufficient to meet the standards.
And in April, the Environmental Protection Agency issued a new set of rules that are expected to increase the amount that automakers are able to deduct from their federal income taxes.
It will now require automakers to report the total value of rebated incentives received and the number of rebaters that they are able and willing to reimburse.
The EPA said it has not yet determined the impact that the new regulations will have on the rebate amount automakers will receive.
But for now, it said that it “will be able to determine the amount” of rebater payments that it would be able “to reimburse for any future rebates” in the coming year.
The new rules were proposed in 2016, and the Obama White House put them in place in 2019.
Under the regulations, rebates received through 2020 will be offset by the payments automakers would be entitled to make to their U. S. customers, and will be limited to $2,000 per vehicle.
It is unclear how many automakers are ready to make the transition, and a spokesperson for Honda told The Associated Press last week that the company is not yet ready to change the way it calculates the value of its rebates.
Department of Transportation is expected to release a new rule later this month that will require automakers, including Honda, to report their rebated fuel economy figures, along with their total cost of ownership, within the next few months.