As far as corporate America is concerned, the jig is up. In a sign that major American businesses are leaving the Trump administration for dead, GM announced Monday it was abandoning Trump's effort to strip California of its legal ability to set more stringent statewide fuel standards.
The Trump administration filed a legal challenge last year to California's authority to set its own fuel efficiency standards—an effort that was backed by GM, Toyota, and Fiat Chrysler. The lawsuit was effectively a declaration of war on a state that has served as a trend setter in working to reduce the carbon emissions of American autos.
But with the center of gravity now shifting toward the Biden administration and it’s pro-environment agenda, GM has decided to side with the future, according to The New York Times.
“President-elect Biden recently said, ‘I believe that we can own the 21st century car market again by moving to electric vehicles.’ We at General Motors couldn’t agree more,” Mary Barra, General Motors chief executive, wrote in a letter Monday to leaders of some of the nation’s largest environmental groups. The Times reports that Barra also phoned California's chief regulator, Mary Nichols, a top pick to lead Biden’s Environmental Protection Agency.
Oh, and apparently GM officials forgot to inform the Trump administration—or, if they did, no one told EPA spokesman James Hewitt. “It’s always interesting to see the changing positions of U.S. corporations,” said Hewitt. Oops.
The timing of Biden's new emphasis on combatting climate change also fits perfectly with GM's business plans. In recent months, GM has been signaling plans to move aggressively into the electric vehicle market. The mammoth car company—which had urged the Trump administration to loosen environmental regulations four years ago—recently announced a $27 billion investment in EVs along with plans to unveil 30 new such vehicles by 2025.
What a difference an election can make.