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GM CEO: Fuel Rules Hurt More Than Trade Wars
13 Jan
Summary
- Looser fuel economy rules significantly impacted GM's business.
- GM adjusted billions in EV investments due to regulatory shifts.
- EV transition will take longer without government incentives.
General Motors CEO Mary Barra has revealed that the U.S. administration's efforts to weaken fuel economy regulations have impacted the company more profoundly than shifting trade policies. These regulatory changes, such as the rollback of tailpipe emissions rules and the discontinuation of a $7,500 electric vehicle tax credit, necessitated significant strategic adjustments for GM.
Barra indicated that these shifts led to billions of dollars in EV investment cuts and a pivot towards internal combustion engine vehicles. While GM still views electric vehicles as the ultimate direction for the industry, Barra acknowledged that the absence of incentives will prolong the transition period, though she remains confident in eventually reaching a fully electric future.
GM is exploring plug-in hybrids and evaluating traditional hybrids while prioritizing EVs as superior products. This strategy aligns with broader industry trends, as other major automakers, like Ford, have also scaled back EV ambitions. Barra emphasized the need for GM to maintain flexibility amidst evolving regulations from potential future administrations.
