General Motors Withdraws From Trump Lawsuit Targeting California’s Emission Regulations

As the demand for zero-emission and electric vehicles gains more traction, prominent automakers are increasingly beginning to align themselves with progressive and environmentally-focused initiatives. General Motors is one such company, and has recently announced that it will be abandoning litigation brought forth by the Trump administration regarding California’s right to set its own emissions and fuel economy regulations.

Following GM’s recent announcements regarding plans to spend $27 billion over the next five years on electric and autonomous vehicles, GM CEO Mary Barra penned a letter to environmental leaders that was later obtained by CNBC about the automaker’s decision to withdraw from the Trump administration’s lawsuit effective immediately. Barra notes that President-elect Joe Biden’s support for electric vehicles and calls for unity across the country were the main factors behind the company’s sudden decision to distance itself from the current administration.

Back in 2019, the Trump administration launched efforts to eliminate the Obama administration’s federal emission standards and prevent states including California from setting their own vehicle emissions regulations. The litigation was initially supported by Toyota, Fiat Chrysler as well as GM. However, Barra is now encouraging the remaining automakers to withdraw their support for the lawsuit, and instead embrace the changing landscape towards a more environmentally-conscious future.

By withdrawing its support for the Trump administration’s efforts to dismantle emissions regulations, GM is showing eagerness to work with the incoming government’s environmental policies. In addition, California has recently announced it will ban the sale of gasoline-powered vehicles by 2035 – a move that will likely come as an opportunity for GM given its robust plans for an assortment of electric vehicles in the foreseeable future. The American automaker’s shares have been the subject of favourable results since the onset of the pandemic, reaching a new 52-week high on Monday.


Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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