General Motors Withdraws From Trump California Emissions Lawsuit

General Motors withdrew from the Trump administration's emissions lawsuit against California and urged other automakers to do the same.
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General Motors  (GM) - Get Report is withdrawing from a lawsuit the Trump administration filed against California, challenging the state's ability to set carbon emission standards. 

The company said it was withdrawing from the litigation and urged other automakers to follow suit. 

"We believe the ambitious electrification goals of the President-elect, California, and General Motors are aligned to address climate change by drastically reducing automobile emissions," Chief Executive Mary Barra said in a letter addressed to the heads of several environmental groups. 

In October 2019, the Trump administration sued to stop California from setting its own fuel efficiency, or zero-emission, requirements for vehicles in the state. 

GM, Toyota,  (TM) - Get Report Fiat Chrysler  (FCAU) - Get Report and other automakers backed the lawsuit while Ford,  (F) - Get Report Honda  (HMC) - Get Report and Volkswagen VWAGY did not intervene. Those automakers in August 2019 had announced deals with California on emission requirements.

GM cited President-elect Joe Biden's "Build Back Better" economic recovery plan, which outlines a path to install 550,000 charging stations with the intention to expand vehicle electrification in the U.S.

Last week, General Motors said it would offer 30 all-electric models globally by 2025, with 40% of the automaker's U.S. models being battery-electric vehicles by that time.

The Detroit automaker also lifted its financial commitment to electric and automated vehicles to $27 billion through 2025 from the $20 billion it had planned before the covid-19 pandemic.

GM had been planning to produce 20 vehicles over that time period. 

"Climate change is real, and we want to be part of the solution by putting everyone in an electric vehicle," Barra had said in a statement.