Core Viewpoint - General Motors (GM) is urging lawmakers to block California's strict zero-emission vehicle mandate, indicating a significant shift in the company's strategy as electric vehicle (EV) demand in the U.S. slows down [1][2] Group 1: GM's Strategic Shift - GM, once a supporter of California's plan to phase out gas-powered vehicle sales by 2035, is now lobbying against it and encouraging employees to contact Senators to revoke California's waiver for stricter emissions rules [2] - The company has abandoned its plan to produce 400,000 EVs by mid-2024 and postponed several key launches due to declining EV demand and market pressures [4] Group 2: Market Performance and Projections - California aims for 35% of all new vehicle sales to be electric or plug-in hybrid (PHEV) by 2026, but in the first quarter, EVs accounted for only 20.8% of sales and PHEVs 3.7%, totaling 24.5%, which is about 10 percentage points below the target [3] - Major automakers, including GM and Ford, are scaling back their EV initiatives as sales fall short of projections [4] Group 3: Industry-Wide Challenges - Ford's EV sales declined 2.9% year over year to 27,409 units in the first four months of 2025, with significant losses in its Model e segment [5] - Tesla also faced challenges, with deliveries falling 13% year over year to 336,681 units in the first quarter, and automotive margins declining from 15.5% to 11.3% [6]
General Motors Urges Lawmakers to Block EV Mandate as EV Demand Slows