This ambitious move is part of a larger plan to make the company carbon neutral by 2040.
The days of the internal combustion motor are over.
General Motors announced Thursday that it will phase out petrol-powered cars and trucks by 2035 and only sell vehicles with zero tailpipe emissions. This seismic shift is by one of the largest automakers in the world, which makes billions from fuel-guzzling pickup trucks or sport utility vehicles.
This announcement will likely put pressure on other automakers to make similar commitments around the globe. This announcement could inspire President Biden and other elected officials, to push for more aggressive climate change policies. Leaders might point to G.M.’s decision as proof that even large businesses recognize that it’s time for the world not to rely on fossil fuels, which have been powering the global economy for over a century.
G.M. is certain to cause chaos in the auto industry. In the United States, there were about one million workers in the automotive and parts industries in 2019. This number is higher than any other manufacturing sector. This will have enormous ramifications on the oil and gas industry, whose fortunes are directly tied to the internal combustion engine.
Rapid industry shifts could result in job losses and business failures. Because electric cars don’t require oil changes or transmissions, conventional service stations will need to change what they do. Electric cars are also easier to manufacture, which could put traditional manufacturing jobs at risk. The move to electric cars will also spark a boom for areas such as battery manufacturing, mining, and charging stations.
Today, electric cars are the fastest growing segment of the auto industry. However, they make up only a small percentage of all new car sales. They account for about 3 per cent of global total according to the International Energy Agency. These cars were a niche product in the United States last year, although they saw a rise in sales in Europe and China. These cars are primarily bought by wealthy early adopters, who are attracted to Tesla’s luxury models, as well as by eco-conscious consumers.
Ford Motor’s spokesperson declined to comment directly on G.M. Ford Motor’s spokesperson declined to comment on G.M. but stated that his company was committed to “leading the electric vehicle revolution where we are strong.” G.M. has pledged modest steps to other automakers, mostly European ones. It is heading in the direction that G.M. It is where it is headed.
G.M. stated that the company’s decision to convert to electric cars was part a larger plan to be carbon neutral by 2040. Mary T. Barra from G.M. said that General Motors was joining other companies and governments around the world in creating a safer, cleaner, and more sustainable world. In a statement, he said that he was the chairman and chief executive of General Motors. We encourage others to do the same and have a significant impact on our sector and the economy in general.
G.M. G.M. Biden is pushing for an economic recovery package that includes funding for the construction of 500,000 electric vehicle charging stations and a system to offer rebates and incentives to encourage electric vehicle purchases.
Vedant Patel (White House spokesperson) welcomed G.M. Vedant Patel, a White House spokesperson, welcomed G.M. He said, “We are grateful for the efforts of the private sector to continue embrace renewable and clean-energy technologies.” “Efforts like these, as the president and others have stated, will help grow our economy while creating good-paying union job opportunities.”
G.M. G.M. In the early days Trump’s administration, Ms. Barra met with Trump in the Oval Office to ask him to repeal the strict Obama tailpipe pollution rules.
Her company’s apparent turnaround four years later has earned her the respect of all those who are trying to restore those rules.
“This G.M. move is a big deal.” Margo Oge, an ex-Obama administration official who was instrumental in the development of tough fuel economy standards and now advises the Biden administration as well as auto companies, said that this move by G.M. This allows the Biden-Harris Administration to concentrate on long-term decarbonization and not just fixing up Trump’s mess.
Audi’s chief executive, a luxury car manufacturer owned by Volkswagen, stated that customers would decide the pace of transition to electric cars. Markus Duesmann (chief executive and head of technology at Volkswagen) stated in a statement that nobody could have foreseen the rapidity of the change ten years ago.
Ferdinand Dudenhoffer is a veteran industry analyst who stated that even though European carmakers have not set a date for internal combustion’s death, there was consensus that electric cars will be dominant within the next 10 to 15 years. Mr. Dudenhoffer stated that Mary Barra was a great C.E.O. She has the right strategy.
On his first day as a president, Mr. Biden stated that he plans to make climate change a driving force of his agenda. The federal standards for auto tailpipe pollution are the most important. This is the country’s largest source of heat-trapping greenhouse gasses.
Obama-era standards required automakers to average 54.5 MPG by 2025. This would have reduced the planet’s warming carbon dioxide emissions by about six billion tons over the life of their vehicles. It also required large-scale conversions to hybrid and electric cars. Trump’s administration reduced the standard to 40 MPG, effectively eliminating the need to make investments in this technology.
Biden’s administration will announce that by April, it will have rules that require cars to average 51 MPG by 2026. Additional provisions are expected to be included in the proposal, which is aimed at increasing production and sales for electric vehicles.
American Petroleum Institute, which represents oil-and-gas companies, stated that automakers would do whatever was best for their business. Frank Macchiarola (the group’s senior vice-president) said that policymakers should protect consumers’ right to choose the car they want.
G.M.’s vision of an all electric future is a radical shift in thinking. It developed the EV1 electric car and leased it out to a few customers just over 20 years ago. Environmentalists praised the car. The automaker stopped the project because it saw no profit potential from the EVI, and American tastes were shifting towards S.U.V.s. The automaker even took cars from customers to destroy them. This episode is documented in the documentary “Who Killed the Electric Car?”
G.M. G.M. The 2002 Hummer H2 was the most hated vehicle in the world. It weighed in at more than 6,600 lbs, twice as much as a Honda Accord. And it had a fuel consumption of only 10 miles per gallon.
G.M. was a rising commodity by 2008. Its emphasis on trucks and S.U.V.s made it vulnerable right as the financial crisis struck. The company’s inability to produce fuel-efficient vehicles was one of the factors that led to its bankruptcy.
G.M.’s history is still a problem. Experts aren’t convinced the company will make the transition to electric cars quickly. This could be due to Ms. Barra and her successors being able to change their minds.
David Friedman, vice president of Consumer Reports, stated that commitments to 1 percent inspiration and 99 perspiration are what the consumers and the climate require, in a quote from Thomas Edison. Strong aspirations can be inspiring and important, but it is only when there are strong production plans and solid policies that the market and climate will move.
Some in the environmental movement trust G.M. G.M. is working with Environmental Defense Fund to create a “shared vision” for removing internal combustion engines. “E.D.F. G.M. “We have had some important differences over the past, but this day in America is a new day,” Fred Krupp, the president of the group, stated in a statement.
Over the next five-years, the company will spend $27 billion to introduce 30 electric cars. It also plans to deliver a Hummer pickup truck and an electric Hummer pickup truck to customers. The Chevy Bolt is its only fully electric vehicle in America. In China, the company also sells several electric models.
Erik Gordon, a University of Michigan business professor who studies the auto industry, said that “this is a cautiously bold move.” It’s not so risky. Who knows where we might end up in 15 or 20 years? Mary Barra will not even be C.E.O. It’s symbolic, however, right now. This is very forward-looking.”
Of course, even if G.M. Even if G.M. The United States has more than 250 million vehicles. Most of them burn gasoline or diesel and are about 11 years old on average.