Monday, November 25, 2019

California Won't Buy Cars From GM, Chrysler or Toyota Because They Sided With Trump Over Emissions, As Obama Takes Victory Lap Over Auto Industry Rescue.


Obama should feel welcome, it’s Detroit and Michigan. In his visit to the North American International Auto Show today, he took a victory lap touting his administration’s bailout of General Motors GM +0% and Chrysler.
The decision to bail out General Motors and Chrysler, and aid their financing subsidiaries and suppliers through loan guarantees in 2009 in the teeth of the economic meltdown that gripped world markets, was hotly debated at the time and since. But given the 640,000 auto industry jobs created since then and the record sales by the industry in 2015, the President has room to crow.
"I think the president is well entitled to come to Detroit to celebrate the auto industry, because he made some very tough decisions that at the time were politically very unpopular," Steven Rattner, former “car czar” who advised the President on the bailout told mlive.com ahead of the President’s visit.


The state of California is taking aim at GM (GM), Chrysler, Toyota, Nissan and other automakers that are aligning with the Trump administration in its battle over emissions rules.
California issued a statement late Monday saying that as of January the state would only buy vehicles from automakers that recognize the California Air Resources Board's authority to set tough greenhouse gas emissions standards for vehicles. California also pledged only to do business with automakers that committed to stringent emissions reduction goals.
Separately, the state also said it will no longer buy sedans that are powered only by internal combustion engines, no matter who manufactures the car. It will buy only plug-in electric or hybrid sedans, although California would make an exception for certain public safety vehicles. That rule does not apply to SUV or truck purchases.
"Car makers that have chosen to be on the wrong side of history will be on the losing end of California's buying power," said California Governor Gavin Newsom in a statement. "In court, and in the marketplace, California is standing up to those who put short-term profits ahead of our health and our future."

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