Mary Barra, CEO of General Motors (GM), stated that the new fuel economy rules that came into force during the Biden administration increased the pressure on the industry. According to Barra, these rules are so strict that GM internal combustion engine (ICE)introduced cuts to the production of models and even up to closing some factoriesIt creates a risk that may go away.
Mandatory EV Share and Fleet Average Print
Barra to reach fleet average by 2031 50 miles per gallon (approximately 4.7 liters/100 km)The obligation to achieve the target has forced automobile manufacturers to electric vehicles (EV)share of total sales more than halfHe stated that he actually pushed him to carry it. This situation shows how narrowly the environmental targets set have put well-established manufacturers and their model ranges.
The CEO’s main concern is what will happen if demand for electric models does not grow fast enough: GM will have to stay within legal limits. will have to impose a ceiling on gasoline vehicle saleshe stated.
Policy Change and Pragmatic Approach
In the interview, Mary Barra also responded to criticism that GM’s view of environmental standards has changed as administrations change. Not the company’s politics, follows market demandand emphasized that it had to comply with the regulations in force.
This transition period comes after a period in which the pressure on manufacturers eased with the rollback of some of the rules during the Donald Trump era. During the Trump era, companies gained more leeway in shaping their model range. However, current mandates mean that companies must carefully pace the transition; otherwise just for the sake of hitting a number pruning profitable conventional modelsIt shows that you will have to.
This approach of GM is both customer interestin the current table where he has to follow the rule book at the same time. a pragmatic necessityIt is evaluated as.
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