GM Doubles Down on Electric Vehicles
On January 28th, General Motors issued a detailed press release signaling its intention to sell nothing but electric vehicles by 2035. The president of the Environmental Defense Fund, Fred Krupp, praised the direction that GM is heading, saying, “EDF and GM have had some important differences in the past, but this is a new day in America.” The development follows GM’S decision to end its support for Trump’s legal effort to roll back Obama’s emission standards and withdraw California’s right to enforce its own regulatory scheme. GM followed up ten days later with a humorous commercial featuring Will Ferrell that aired during the Super Bowl, joking that GM intends to spearhead an American EV sales competition against Norway, a world leader in EV adoption. They have also modernized their company logo. The moves are consistent with the ambitious environmental goals of Mary Barra, a charismatic CEO who has demonstrated a steadfast commitment to developing and marketing EVS.
Critics have badmouthed GM’S post-election decision to leave the coalition of automakers supporting Trump’s EPA, characterizing it as a self-serving flip-flop that signifies Barra’s environmental insincerity. GM’S substantial ongoing investments in electrification tell a different story. The success of the Chevy Bolt demonstrates GM’S early support for EVS, and Chevrolet has been selling more EVS than Ford and Fiat/ Chrysler combined. The popular Bolt made GM the first automaker after Tesla to exceed the 200,000 unit sales threshold that now makes their EVS ineligible for the $7,500 federal tax credit. Their expanding EV lineup is currently at a competitive disadvantage, but they continue to prioritize the introduction of new electric models. They recently unveiled their revolutionary Ultium battery, a significant advance that took years to develop. They brag that their new Ultium platform is flexible enough to electrify any vehicle, proving the boast by rolling out an electric Hummer.
It is hard to explain why there is so much cynicism regarding Mary Barra’s support for Trump’s EPA, ignoring her very substantial green investments. The large coalition that lobbied for a uniform national approach to emission regulations included Toyota, Fiat/chrysler, Nissan, Hyundai, Kia, Subaru, Isuzu, Suzuki, Maserati, Aston-martin, and Ferrari. Barra is the first woman to lead a major automaker and seems to be the only CEO singled out for ridicule. Volkswagen, Ford, BMW, and Honda became instant environmental heroes when they signed a voluntary agreement with the California Air Resources Board, pledging that they would continue to honor Obama’s increasingly stringent standards. The press loved the storyline about the evil automakers versus the good automakers, but in the group wearing the white hats only Honda has a green track record.
There is growing optimism that Biden will be able to forge an amicable alliance with automakers that advances his own ambitious climate goals. General Motors intends to be a dependable partner in that alliance, and they are fortunate to have Mary Barra defending their legitimate interests while steering her company into a clean energy future.
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