GM's Change Of Heart... Demand For Repeal Of California Internal Combustion Engine Car Sales Ban

GM That Virtually Abandoned Full Transition To Electric Vehicles (Source: General Motors)

The American auto manufacturer General Motors (GM), which had staked everything on the transition to electric vehicles, has started lobbying to repeal California's internal combustion vehicle sales ban law. This decision was made out of concern that the slowdown in the electric vehicle market requires a regulatory speed adjustment.

According to The Wall Street Journal (WSJ), GM recently sent emails to thousands of office employees requesting them to persuade federal senators of the necessity to withdraw California's eco-friendly car policy. GM emphasized, "Emission standards that do not match market realities weaken consumer choice and limit vehicle purchasing power, posing a threat to our business."

The policy that GM is pushing to repeal is the internal combustion vehicle sales ban bill that California set in 2022. According to the bill, California plans to implement regulations to increase the percentage of zero-emission vehicles in total new car sales to 35% by 2026, 68% by 2030, and 100% by 2035. Subsequently, 11 other states, including New York and Massachusetts, agreed to introduce the same regulations.

Although GM also announced a goal to discontinue gasoline vehicle sales by 2035 in line with these regulations, plans were disrupted as the electric vehicle market growth did not proceed as quickly as expected. WSJ analyzed that "Three years ago, American automakers couldn't keep up with electric vehicle demand, but now the market is slowing down," and "GM, which was 'all-in' on electric vehicles, is now making every effort to overturn the most radical electric vehicle regulation in the U.S."

Even in California, zero-emission vehicles account for only 20% of all new cars, falling far short of the 35% target for 2026. According to Cox Automotive, last year's U.S. electric vehicle sales reached a record high of 1.3 million units, but the growth rate compared to the previous year was only 7.3%. This is a significant slowdown compared to the 49% growth in 2023.

This lobbying effort by GM is interpreted as a strategic change reflecting the possibility of a prolonged slowdown in the electric vehicle market growth. There is a growing interest in how U.S. electric vehicle market policy directions will be adjusted in the future.