GM Urges The Senate To Kill California’s 2035 EV Rules

Authored by Mike Shedlock via MishTalk.com,

GM once supported California’s 2035 EV target. It wisely has second thoughts…

Sanity Prevails

In 2022, California Governor Gavin Newsom approved regulations banning the sale of new gasoline-powered cars and trucks by 2035. GM foolishly supported the idea.

I am pleased to report that sanity has prevailed. The Wall Street Journal reports GM Is Pushing Hard to Tank California’s EV Mandate

“We need your help!” GM said in an email it sent this past week to thousands of its white-collar employees. “Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability.”

GM, one of the biggest sellers of EVs in the U.S., is encouraging employees to use scripted talking points to lobby Senators. The goal is to nullify a 2022 California measure that would ban the sale of new gasoline-powered cars and trucks by 2035, a mandate that has since been adopted by 11 other states. The Senate could vote as early as next week to revoke a waiver that allows California to set its own stricter tailpipe-emissions standards.

GM set its own internal goal of ending sales of nearly all gas-only vehicles by 2035 and initially supported the California target, while advocating for a uniform national standard.

But the EV market has taken a turn. Three years ago, U.S. automakers couldn’t keep up with demand; now EV sales are beginning to sputter. Discounts are drying up, car buyers are seeking lower-priced alternatives, and Congress is looking to roll back tax credits that for years have powered electric-vehicle sales.

GM abandoned a self-imposed target to build 400,000 electric vehicles by mid-2024, and last year the company said it would delay plans for a new Buick electric vehicle and push back the opening of an EV truck factory. Ford Motor and other automakers have similarly scaled back plans.

“GM believes in customer choice, and we continue to focus on offering the best and broadest portfolio of vehicles on the market,” the spokeswoman said. 

The turn against California’s mandate has been bipartisan. When the U.S. House passed a bill identical to the Senate’s earlier this month, 35 Democrats supported the legislation, including two from California.

Rep. Laura Gillen, a Democrat from New York, one of the states to adopt the mandate, said she supports the goal of reducing emissions but that the timeline is “out of touch with reality” and an undue burden on consumers facing a cost-of-living crisis.

“If everybody in my district went out and got an EV, the grid could not accommodate that,” Gillen said.

Hoot of the Day

GM now supports customer choice. Fancy that.

Republicans are using the Congressional Review Act (CRA) which allows Congress to review and potentially overturn federal agency rules.

The maneuver only needs a simple majority and is thus filibuster-proof. Thus, the CRA should pass the Senate easily.

There may be a legal challenge, but I expect Trump will prevail on this one if there is a challenge. If seven Democrats sign on, then this can pass by normal legislation.

Eleven states have adopted California’s mandate and if Democrats take the White House again, they may adopt more nonsensical EV rules.

So it’s best to get 60 votes. But 4 years of sanity is better than none.