GM turns on Trump, now supports strict California emissions rules

General Motors said on Monday it had turned the tide and no longer supported President Donald Trump’s plan to stop California from setting its own auto emissions standards.

In September 2019, the White House decided to revoke the power the Obama administration gave California to set strict CO2 guidelines. The California Air Resources Board (CARB) followed suit with significantly stricter standards than those promulgated by the Environmental Protection Agency, which effectively led to a surge in sales of electric vehicles this decade.

The divided auto industry saw Ford and BMW among automakers siding with California. GM, Toyota, Fiat Chrysler, and others have backed the Trump administration, arguing for the need for consistent national standards for clean cars.

Now, however, GM has changed sides, its about-face coinciding not only with its plan to increase its own investment in battery-powered cars, but with the White House confirming a move to a new administration much more sensitive to the clean energy and more severe automotive emissions. standards.

In a letter sent to environmental groups on Monday, GM CEO Mary Barra said the automaker was “immediately withdrawing from pre-emption litigation and inviting other automakers to join us.”

In a statement sent to NBC News, Toyota said: “In light of changing circumstances, we are assessing the situation, but remain committed to our goal of a consistent and unitary set of fuel economy standards applicable in 50 states.

Other manufacturers who have joined the Coalition of Sustainable Automotive Regulation have not yet responded to requests for comment.

It’s unclear what impact GM’s decision will have on the pending litigation. California has been joined by 22 other states that have adopted its clean car guidelines, as well as many environmental groups. The Trump administration is also locked in a court battle over plans to roll back the average fuel economy standards of Obama-era businesses.

While the White House and the Justice Department have so far been silent on GM’s announcement, EPA spokesman James Hewitt told Reuters: “It’s always interesting to see the developments. positions of American companies.

GM officials declined to comment on the specific timing and reasoning behind the company’s turn, but several factors appear to be at play.

On the one hand, Barra ordered the automaker to speed up its descent, which she often calls “a path to a fully electric future.” In recent months, the company has unveiled an assortment of new battery-electric vehicles, or BEVs, including the Chevrolet Bolt EUV, the Cadillac Lyriq SUV and the GMC Hummer pickup. Last week, GM announced that it was increasing spending on electric vehicles and autonomous vehicles by 35% from earlier plans from the mid-decade.

The chief executive’s announcement of California’s tenure also came on the day the White House virtually officially conceded the 2020 presidential election, approving the process of transitioning to President-elect Joe Biden.

The former vice-president of Barack Obama has promised to favor clean and renewable energies, including battery electric vehicles. In GM’s statement on Monday, Barra said, “We believe the ambitious electrification goals of President-elect California and General Motors are aligned to tackle climate change by dramatically reducing emissions from automobiles.”

GM has one of the most aggressive electrification programs in the industry, with plans to bring “20 or more” BEVs to market by 2023, and even more for the rest of the decade.

California has pushed in the same direction. Although it has not called for an outright ban on vehicles using internal combustion vehicles – which is happening in a number of foreign markets – the state wants to start phasing out gasoline and diesel trucks. over the next 15 years. And the guidelines the Trump administration hoped to block would also promote rapid growth of BEVs in the passenger car market.

California is the largest US market for new vehicles, accounting for about 11% of annual sales. Adding in the other states that have adopted its stricter standards, that’s over a third of the US volume.

Gov. Gavin Newsom said in September that states would ban the sale of new passenger cars using internal combustion engines by 2035. CARB had already made plans to begin phasing out gasoline and diesel trucks from the start. mid-decade.