General Motors Co (GM) on Monday withdrew from a challenge backed by US President Donald Trump’s administration to California’s fuel economy rules that endorse US president-elect Joe Biden’s policy for boosting the use of electric vehicles.
In October last year, GM — along with Toyota Motor Co and Fiat Chrysler Automobiles NV — announced that they supported the challenge to California, arguing that fuel economy rules should be set federally.
The Trump administration had taken a confrontational posture toward California’s rules, which adopt stricter environmental standards than those at the federal level.
Yet on Monday, the US auto giant said that it was “immediately withdrawing” from the lawsuit and invited other automakers to follow suit, GM chief executive officer Mary Barra wrote in a letter to environmental groups.
Barra, who met Biden earlier this month and has had a fractious relationship with Trump, said that she was “confident that the Biden administration, California and the US auto industry ... can collaboratively find the pathway that will deliver an all-electric future.”
Barra said that she was “inspired” by Biden’s “Build Back Better” plan, “which outlines a clear intention to expand vehicle electrification in the United States, create 1 million jobs, install 550,000 charging stations, and position American auto workers and manufacturers to win the race for electrification.”
Biden welcomed the move, calling it “encouraging news for our economy, our planet and the long-term success of American autoworkers.
“GM’s decision reinforces how shortsighted the Trump administration’s efforts to erode American ingenuity and America’s defenses against the climate threat really are,” he said, adding that the manufacturer’s choice would have a “positive ripple effect” on the manufacturing economy.
GM announced last week that it would boost investment in electric and autonomous vehicle technology by US$7 billion through mid-decade as it unveils more all-electric vehicles.
Barra has clashed with Trump a number of times, including earlier this year, when the president accused GM of dragging its feet in shifting production capacity to build ventilators for the battle against COVID-19.
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