U.S. President Donald Trump said he has approved the manufacture of 'tiny' cars in the United States. Facing pressure over affordability amid rising housing costs, he praised ultracompact kei cars he saw in Japan as 'really cute.' Details remain unclear, but the vehicles could be gasoline, electric or hybrid powered.
At a White House event on Wednesday, Trump suddenly said he wants to see Japan-style tiny cars built and driven in the United States. 'Honda (and) some of the Japanese companies do a beautiful job, but we're not allowed to make them in this country,' he said at the time. 'I think you're going to do very well with those cars. So, we're going to approve those cars.'
After describing ultracompact kei cars that he saw in Japan about a month earlier as 'really cute,' Trump wrote on social media on Friday: 'Manufacturers have long wanted to do this, just like they are so successfully built in other countries. These cars of the very near future are inexpensive, safe, fuel efficient and, quite simply, AMAZING!'
In Japan, so-called minivehicles, with engines no larger than 660 cc, account for almost 40 percent of new vehicle sales. On Thursday, Transportation Secretary Sean Duffy told a CNBC interview that the administration was in the process of 'clearing the deck' for regulatory changes following Trump's directive. 'If there's a market for those vehicles, I want to give our manufacturers the opportunity to build those cars,' Duffy said, adding they are probably not to be driven on U.S. freeways. 'But again, vehicles that work in cities and if that's where you drive, it could be a great solution for you,' he said, stressing they are 'much more affordable than other options.'
While details remain unclear, including which very small cars would be subject to his approval, this move addresses growing pressure on the administration over vehicle affordability.