GM withdraws support for Trump’s lawsuit against California over emissions

General Motors is withdrawing from litigation led by the Trump administration against California over the state’s right to set its own fuel economy and emissions regulations, distancing itself from President Donald Trump.

In a letter Monday to environmental leaders, GM CEO Mary Barra said the company’s decision to withdraw from the litigation is effective immediately. It follows President-elect Joe Biden’s Nov. 3 election, his support for electric vehicles as well as his call for unity in the country, she said.

“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,” Barra wrote.

By withdrawing, GM is showing support for the incoming administration while distancing itself from Trump, who has publicly praised and condemned automakers during his tenure as commander in chief. GM has plans for a robust portfolio of electric vehicles in the coming years.

Shares of the automaker during trading Monday afternoon were up as much as 4.9% to a new 52-week high of $45.16 per share.

The White House declined to comment. U.S. Environmental Protection Agency spokesman James Hewitt said that “it’s always interesting to see the changing positions of U.S. corporations.”

Biden, in a statement, applauded GM’s decision as well as Barra’s comments in the letter to environmental leaders. He also referred to the Trump administration’s efforts as “shortsighted.”

“There is nothing beyond our capacity as a country when we work together,” he said. “I look forward to working with GM and other U.S. manufacturers — as well as American workers — in the years ahead to take bold, progressive steps to meet the existential threat of climate change and create millions of union jobs.”

Article source: https://www.cnbc.com/2020/11/23/gm-withdraws-support-for-trumps-emissions-lawsuit-against-california-.html