In a move demonstrative of the Trump administration's rapidly eroding support in the corporate world, General Motors (NYSE: GM) has abandoned its support of President Trump's push to roll back California's fuel economy legislation. GM Joins the likes of Ford (NYSE: F) and other companies that have supported California's legislation in opposition of President Donald Trump.
Corporate America's support of the Trump administration is rapidly drying up as the year inches closer to a close. President-Elect Joe Biden is poised to undo the rollbacks of Obama-era climate legislation, something that many automakers in the United States have rallied behind. GM now joins the ranks of those corporations, including its lifelong rival Ford, in a move that has it abandoning its support of President Trump's legal push to roll back California's fuel economy laws.
GM's sent letters to various environmental groups around the country, seemingly throwing its support behind the incoming President and his drive to restore environmental legislation repealed by the Trump administration.
"President-elect Biden recently said, 'I believe that we can own the 21st-century car market again by moving to electric vehicles.' We at General Motors couldn't agree more," said CEO Mary Barra in the letter. "we are immediately withdrawing from the pre-emption litigation and inviting other automakers to join us."
GM's move has it joining ranks with major automakers such as Ford, Honda (NYSE: HMC), and Volkswagen (OTC: VWAGY) that have supported California in its legal battle from the beginning. Barra's invitation is likely intended for Toyota (NYSE: TM) and Fiat-Chrysler (NYSE: FCAU), which still support the President in the legal battle to overturn California's legislation.
Many on social media took to deriding GM for its sudden reversal, with some claiming that it was an opportunistic move only done in response to Biden's electoral victory. Others, however, such as Ford's CEO Jim Farley, came out in support of GM.
"I applaud GM for reversing course on this critical issue. I'm also proud that Bill Ford and Ford stood tall for environmental progress from the start. Principle over politics," Farley tweeted.
Investors seemed enthused or at least accepting of the decision, based on GM's performance at the market on Monday. GM opened strong after a pre-market bump and gained 2% during trading, climbing from $43.88 to $44.77. GM's climb continued into Tuesday, with the carmaker at $46.28 by noon.