GM Slams California’s 2035 Gas-Car Ban as ‘Out of Touch,’ Escalating EV Policy Clash

General Motors (GM) is asking its white-collar employees to speak out against California’s 2035 ban on new gas-powered vehicles, a rule that has been adopted by 11 other states as well. The company says the mandate is out of touch with the electric vehicle (EV) market today.

According to a Wall Street Journal report, GM told staff in an internal email, “We need your help!”GM warned that aggressive emissions rules could hurt business by limiting consumer choice and making vehicles less affordable. Employees were encouraged to contact senators using talking points aimed at revoking a waiver that lets California set its own stricter emissions standards.

How the Wheels Have Turned

That same California rule was once backed by GM, which had pledged to sell mostly electric vehicles by 2035. However, market conditions have shifted significantly since GM committed to that plan. EV demand has cooled considerably. Sales of electric vehicles fell 5% in April, while overall U.S. car sales jumped 10%, according to Motor Intelligence. EVs now make up just 7% of the market nationwide.

In California, the EV leader, zero-emission vehicles currently account for about 20% of new car sales, far below the 35% target the state set for 2026. Rising costs, fewer discounts, and the potential loss of federal tax credits make EVs less appealing to price-conscious buyers.

Even GM has had to dial back its ambitions. It scrapped its plan to build 400,000 EVs by mid-2024, delayed the launch of a new Buick EV, and postponed opening an electric truck factory. Ford (F), Stellantis (STLA), and Toyota (TM) have also slowed their EV rollouts.

Carmakers Rally Against ‘Unrealistic’ EV Mandates

Still, GM says it’s committed to electric vehicles and continues to invest in new models. A company spokeswoman said GM supports one consistent emissions standard nationwide that considers actual market demand. The lobbying push included workers in Michigan and other key states where lawmakers’ offices reportedly had received calls from GM employees.

The Alliance for Automotive Innovation, which represents major carmakers, is backing GM’s stance. It warns that California’s goals are unrealistic and could lead to job losses.

Supporters of California’s waiver say the state’s geography and environmental challenges justify stricter rules. But some Democrats, even from states with the ban, are starting to push back. They say the timeline is too ambitious and burdens consumers.

As one Long Island Toyota and Lexus dealer put it, EVs remain out of reach without subsidies. “The customers just aren’t there.”

Using Tipranks’ Comparison Tool, we’ve compared the notable American EV car makers to gain a broader perspective on the EV industry.