California Governor Gavin Newsom criticized GM’s CEO, Mary Barra, accusing her of betraying the state by backing down from a commitment to reduce gas vehicle sales.
GM, the largest automotive company in the U.S., argues it is aligning with consumer preferences, highlighting a disconnect between this and Newsom’s strong focus on promoting electric vehicles.
The company has reinforced its investment in gasoline-powered models and, according to Newsom, has lobbied to weaken California’s leading clean car regulations.
California has long pressured car manufacturers to lower emissions, initially by moving away from high-consumption vehicles and now by pushing for non-gas vehicles.
In October 2023, state officials even mandated that all new vehicles sold in the state can’t burn fuel by 2035.
The rule has faced scrutiny and, after an intervention by Donald Trump earlier this year, is now on pause.
Newsom accused Barra of leading the charge against California’s authority.
Newsom remarked, “Mary Barra abandoned our progress, undermining the advances initiated by the California Air Resources Board in 1967, which began regulating emissions,” during a press conference on Friday.
GM’s CEO, Mary Barra, has remained committed to EV sales, saying she believes the future for American carmakers is profitable EVs
California’s Governor Gavin Newsom chided Mary Barra for allegedly leading a push against his state’s regulations
‘The Republicans rolled that back this year under Donald Trump’s leadership, but the American automobile manufacturers allowed that to happen.
‘GM led the effort.’
Newsom’s anger also comes after he admits his state cannot pay for tax credits for sales of new EVs.
Previously, the Governor mentioned that if the Trump administration revoked the $7,500 federal tax credit for electric vehicle purchases, California would introduce its own incentives.
But the state is facing a budget shortfall and is not able to fit the vehicle line item in its financial plans.
In 2023, GM was in favor of California’s push. A group of automakers unsuccessfully sued the state to get rid of the regulation.
Barra urged automakers not to sign onto the lawsuit and pulled GM’s support.
But after years of shaky EV support, GM appears to have changed its tune.
GM’s Hummer EV does 0-60 in three seconds. But Americans still want gas-powered vehicles so GM is slowing its move to going fully electric
GM is America’s second-largest EV maker, with products across its Chevy, GMC, and Cadillac brands. The GMC Hummer, shown above, is built in a Michigan battery plant
In May, GM urged employees to lobby lawmakers to overturn the ban on the sale of new gas cars in the state.
‘We need your help!’ GM wrote in an email to thousands of salaried workers.
‘Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability.’
At the time, a GM spokesperson told the Daily Mail that the company was committed to ‘customer choice.’ The company declined to comment on Newsom’s press conference.
GM has consistently said it is committed to building more electric cars.
During its most recent earnings call in June, Barra said she believes ‘the long-term future is profitable electric vehicle production, and this continues to be our north star.’
GM sells the second most electric vehicles in the US. Only Tesla sells more EVs.
