California has pledged to stop buying vehicles from General Motors, Toyota and Fiat Chrysler Automobile for its government fleets after the automakers sided with President Donald Trump in the state’s fight to set its own fuel economy regulations.
Last month, GM, Toyota, FCA and a number of other major automakers joined the Coalition for Sustainable Automotive Regulation, supporting the White House’s proposed fuel economy regulations freeze. Meanwhile, California wants to be able to set its own fuel economy standards and believes more relaxed standards will pose a threat to the environment.
The Trump Administration moved to revoke a waiver that would allow the state to set its own fuel economy regulations, prompting the state to file suit over the matter. When the Coalition Sustainable Automotive Regulation came out to support Trump’s looser regulations, California saw this as the automakers not supporting its rights to set its own fuel economy laws. Now, the state is punishing the automakers over the decision.
“Car makers that have chosen to be on the wrong side of history will be on the losing end of California’s buying power,” California Governor Gavin Newsom said in a statement.
In July, California struck a deal with Ford, Honda, BMW and Volkswagen, with the automakers agreeing to meet the state’s more stringent fleetwide fuel economy standards. Starting in January 2020, California will only purchase new vehicles for its fleets from these companies. According to Reuters, California purchased $69.2 million in vehicles from Ford between 2016 and 2018, along with $565,000 from Honda and none from BMW. It also purchased $58.6 million in fleet vehicles from GM during that three-year period, $55.8 million from FCA and $10.6 million from Toyota.
In a statement made to Reuters, a GM spokesperson said it was unfortunate that California will no longer purchase the Chevrolet Bolt EV and other American vehicles for its fleets.
“Removing vehicles like the Chevy Bolt and prohibiting GM and other manufacturers from consideration will reduce California’s choices for affordable, American-made electric vehicles and limit its ability to reach its goal of minimizing the state government’s carbon footprint, a goal that GM shares,” said GM public policy communications director, Jeannine Ginivan.
The coalition that sided with Trump in the fuel economy row also included major automakers such as Nissan, Hyundai, Kia, Isuzu, Maserati, McLaren, Aston Martin and Ferrari.
The Trump administration should release its official fuel economy requirements in the coming months, Reuters also reports. The Obama-era standards the White House is looking to roll back would have seen 5% annual increases to the fleetwide fuel economy standard between 2020 and 2026, whereas the Trump standards will likely see annual increases of about 1.5%. The current national standard requires automakers to have an average fuel economy of 26 mpg.
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Comments
GM could have just signed up with California to avoid this mess. Now they will lose all their US EV market Share. Bad PR. Dumb Decision. Sad.
California is soon to be a third world state. It is well on it’s way, so nobody cares about what these idiots say.
The idiots are those not doing more, or at very least following California’s lead.
The economy of California is the largest in the United States, boasting a $3.0 trillion gross state product. California would rank as the world’s fifth largest economy, ahead of India and behind Germany were it a Nation. What a Bunch of idiots I guess. I wish my State was that Stupid and Idiotic. Give it a Rest with all this California Bashing.
GM messed up yet once again and will now Pay the So Called “Stupid Tax” meaning there was NO reason for GM to go against California other than the Fact that they know they are full of you know what and are definitely well behind in Fuel Efficiency and EV’s. That and they Probably wanted The President to Stop Tweeting about them. How Shortsighted. Whether Trump wins again in 2020 makes no difference. The Global Auto Market will still be around when he or any other President is long done with their Term or Terms. Technology doesn’t stop for any President or any Political Party.
GM with one extremely stupid decision just handed the biggest and wealthiest State a reason to go Directly to Ford and to alienate a Whole State (for the Most Part) from being Future Customers. How Dumb can Marry Bara really be.
Unbelievable.
I mean sure dude, what happens when Ford decides to join that team? In the near future California will either secede from the United States, be scorched 100%, or decide to stop playing mind games with consumers. If anything California is placing their own citizens in harms way by eliminating choices. I thought we were all against monopolization, clearly California is contradicting that.
If California is ceasing to do government business with GM, how long will if be when California decides to cease all state sales of those manufactures siding with Trump.
Dumb move on California.
@All about the Principle you lib
You are missing the point. My take has absolutely nothing to do with Trump. I stated Presidents come and go. Political Parties change power every so many years. GM did not have to come out Public that they are siding against California.
If you sit back and take the approach of a NON Political reason on who is siding with the current Administration it is the two Companies that have Zero EV’s (FCA/Toyota) and then GM which just wants the Tweets against them to Stop. That is why this is so Short Sighted.
Ford has already sided with California. Only those Three Auto Makers are siding with the current Administration. I get why Toyota and FCA did but no reason for GM to do so. What happened to their Zero/Zero/Zero Future?
They Basically handed All Future Government Contracts to Ford. How does this make any sense to anyone here? Why has this site become so Political the last three years that some cannot see just how dumb of a move this was by GM. Take Political ideals out of it and just think about the decision.
GM owns the Governmental Fleets for Vans and SUV’s and then FCA for Cop Cars. They both just handed it over in California to Ford because both are Shortsighted. What will happen if the other States that have sided with California take the same approach as well?
How is this not short sighted?
Bye Feliciafornia
If California is anti GM that is all the more reason for me to be pro GM!
So the Dem in charge is in to punishing businesses for not being on his side, is that legal? impeachable?
Do the GM ICE vehicles California has been purchasing meet their EPA requirements?
Do the FOMOCO Vehicles California has been purchasing even meet the (C)PA requirements much less their posted claims?
Does the increased cost of the coming new vehicles help the growing middle (cough) lower class population of California?
Does this apply to local governments at county and city levels?
Are fleet sales all that important (profitable) to the manufacturers and could this be a blessing (end up being a bad deal for Ford, Honda, BMW and Volkswagen) in the long run?
Does the Dem even know anything about the automotive industry to begin with?
Volkswagen? How quickly we forget Mr. Newsom!
@fastyle
It is Called State rights. Just like how the State of Michigan and others will now allow an American Company to sell in their State due to lobbyists money. That Company is Called Tesla.
Cannot have it both ways. State Rights are State rights.
@Momolos
City and county governments can regulate their own laws such as San Francisco banning the sell of e-cigs in city limits.
https://www.cnbc.com/2019/06/25/san-francisco-bans-e-cigarette-sales-becoming-the-first-city-to-do-so.html
Is the governor saying San Francisco would be prohibited from purchasing GM vehicles if they chose to?
If so what would he do, punish them also?
If this does not apply to local governments then this is all moot.
As far as “Michigan and others will now allow an American Company to sell in their State”.
Are you referring to Tesla selling directly to the consumer? If so then it is only fair that they allow every “American Company” (you said it first) to sell directly to the public.
@fastyle
So you are saying if the Mayor of Detroit wants too he or she can tell the Governor we do not care what you pass we will allow Tesla to be sold in Detroit?
Looks like i’m being moderated, post pending censorship!
One last try:
From Tuesday 11/19
@Momolos
No, you said it.
“Just like how the State of Michigan and others will now allow an American Company to sell in their State due to lobbyists money”.
I was under the impression you were saying Tesla should be allow to side step the rules of car sales through dealerships in america.
https://electrek.co/2018/02/14/tesla-pushing-right-to-sell-cars-directly-states/
It is well documented that traditional dealerships do not want to sell EV’s due to the low margins on them yet the manufacturer of those cars are not allowed to sell them directly to the public.
Should Newsom require all dealerships in Ca, by law to have a certain percent of the vehicles they order be EV’s.
If Tesla is allowed to sell directly to the public, all manufacturers should.
Gavin Newsom is Nancy Pelosi’s nephew, which may help explain the situation. My understanding is that it is a threatened restriction on state controlled agencies, not local municipalities or counties.
What may be even worse, in 2023 CARB is set to implement annual smog tests for Class 4 and heavier trucks. Carb doesn’t yet know how they are going to do that, but is looking at a sliding scale based on model year. Speculation going around some federal agencies is that Cali is going to use the class 4 and heavier smog standards as leverage against the companies which sell light duty vehicles classified in the CAFE fleet as well as class 4 and heavier. Ford fell for it, Toyota (Hino) didn’t.
This stuff should be available on transparentcalifornia.com
https://calmatters.org/commentary/gavin-newsoms-keeping-it-all-in-the-family/
Michigan should recall it’s idiot attorney general that joined the CA suit!
I agree. The lawsuit over revoking Cali’s exemption to the Federal Clean Air Act enabling that state to set their own vehicle emission standards is going to be a long and expensive legal proceeding. When Cali holds their hands out to all these other states for funding their case, don’t be surprised, they have done it before.
Btw, this is our new Michigan Attorney General; it only figures….,
https://marriedbiography.com/wp-content/uploads/2018/11/detroit-news.jpg
We are not “United States of California. Screw them. We should do all we can to make the state implode financially. I have not purchased anything that said “made in California ” on it.
@Cary
Have you ever purchased anything that says Made in America?
Because if you have, it may have came from California.
That’s a good point.
Please let me know what’s made in California since you guys shut-down any manufacturing, please don’t mention food or Elon’s pet projects, plus I believe Cali is economically worse off then Mississippi outside SF, LA and SD . I’ll wait…
@Guestt
First off, Elon doesn’t have Pet projects he has products that he sells around the World in which his Company cannot manufacture fast enough.
Second, SpaceX has already revolutionized Space Travel
Third, I am NOT from California. You would have noticed had you Paid any attention to this thread at all.
Fourth, why cant Food be mentioned exactly?
And finally…Please let this sink in ok? Please stop saying things that make zero sense or are completely false ideas you may have as factual.
Here comes the only fact that matters yet one last time….
The economy of California is the largest in the United States, boasting a $3.0 trillion gross state product. California would rank as the world’s fifth largest economy, ahead of India and behind Germany were it a Nation.
But I am sure Mississippi or whatever other States you mentioned are better off LOL
The funny thing is I have been on this site for so long that I honestly do not remember when I started. I have yet to hear anyone take offense that not only Michigan but multiple States will not allow an American Company to do business in their State. Where is the Foul cry for Tesla?
I have never said anything about it because there are State Rights and as long as certain States chose to not allow an American Car Company access to their State which would bring in jobs, well then so be it. I disagree with them but I do not Bash the States.
But now California is not even saying they will not allow GM to do business there just simply that they will not spend their Tax money on their Product.
As I stated above, stupid decision by GM to take a Side. California purchased nearly 70 Million Dollars worth of GM Product and another 40 some million on FCA product. Toyota was only like 10 Million or so. Sometimes in life you make a decision and then from that decision another Party involved takes a turn you were not expecting that you probably should have. GM needs real leadership ASAP.
My take has absolutely nothing to do with Politics or Political parties or preferred States in America. My take has more to do with common sense and GM messed this one up Big Time because they were sick and Tired of getting Tweets. So Short sighted.
Hence they need real leadership and they need it ASAP.
Now Millions of people in California will be listening to local Media talk about this and guess what that outcome will be? Younger Generation individuals and even kids will have a Negative outlook towards the company that may have never even had a though about GM at all. Good or Bad.
Now let me ask everyone this. What about if the other States that are backing California decide to pull the same move? How will that help GM exactly?
I said it the minute I heard it and I will stick by it, Stupid decision and a very Short Sighted one as well.
GM talks from both sides of their mouth. They keep Stating how their Future is a Zero-Zero-Zero Future yet they desperetly want the Tweeting to sop and they pick a side that ONLY two other Automakers chose. The other Two Automakers have Zero EV Production. They desperetly need the Administration to relax the Regulations. GM did not need to pick a side. They did and here we go I guess.
Again, what does this state provide outside food that can be provided elsewhere or just one guy providing science pipe dreams?. What people have Space X sent up or any significant steps before sending a suicide mission to Mars?.
California can’t get it’s checkbook balanced with the homeless epidemic, millions of Californians outside the 3 economy zones can’t make ends meet nor keep the lights on (even if the bill is paid, lol) and a $100 billion train to nowhere but the US has to listen to the #1 state debt in America oh um the “largest economy” (btw Cali only have $110 billion bin assets to pay it’s $390 billion bill) . California need to get it’s house cleaned.
GM (and Toyota and etc) shows thier commitments with EVs but OTOH they’re business-for-profit, they have to make money while introducing tech. Also what does a pompous, arrogant government of a state have GM to worship in order to do business or impose it’s will on other states since your a proponent of state’s rights?.
Take away the film industry and Cali would probably shrivel up to nothing. Cali wants the other state to go into the hole just like them.
If you cannot understand or you’re unwilling to understand how powerful of an economy California is then I cannot debate any longer. You cannot pick your own Truths and or stats. You either believe in Facts or you simply do not. Nothing much more can be said I guess.
I did however notice you didn’t mention anything about State Rights screwing over an American Company in not just one State but multiple States. Not in that the States refuse to use Tax money to purchase any of their Products but in the fact that they are not even allowed to set up shop which will bring American jobs to their State. Don’t see you upset about State Rights concerning Tesla but California unwilling to use their Tax money on GM vehicles is a huge issue I guess.
Cannot have it both ways.
If trumps plan is to have one EPA standard to cover the USA, this has to be a good thing, their are three now and depending where the cars sold/resides will determine the EPA class required.
Folks who feel threatened by the gratuitously cruddy behaviour of that California Governor and his bureaucrats should do what any sensible manufacturer (or anybody else) would do: shut down the Cali plants, move the machinery out of State, and demolish the building.