General Motors Co. is abandoning a legal battle between the Trump administration and California over the state's right to set its own standards for greenhouse gas emissions and fuel economy rules, the automaker said Monday, and urging other automakers to do the same.
The move signals a recognition by GM that its electrification and zero emissions strategy is more closely aligned with the priorities of the incoming presidential administration, and that it is preparing for the likelihood of more unified auto industry regulations under President-elect Joe Biden.
On the campaign trail, Biden has pledged to invest in infrastructure that supports electric vehicles and incentivize EV adoption through federal financial support to automakers and expanded tax credits for consumers.
"We believe the ambitious electrification goals of the President-elect, California, and General Motors are aligned to address climate change by drastically reducing automobile emissions," GM CEO Mary Barra said in a statement.
"We are confident that the Biden Administration, California, and the U.S. auto industry, which supports 10.3 million jobs, can collaboratively find the pathway that will deliver an all-electric future. To better foster the necessary dialogue, we are immediately withdrawing from the preemption litigation and inviting other automakers to join us."
