Comptroller Stringer and Investors with $1.1 Trillion Urge General Motors to Join State Agreement on Clean Vehicle Standards

(New York, NY) — New York City Comptroller Scott M. Stringer and a coalition of 25 major investors with $1.1 trillion in collective assets under management today called on General Motors (GM) to join its peers in the compromise agreement with California and other states on clean vehicle standards.

In a letter sent to GM’s CEO Mary Barra, the investor signatories together stressed the urgent need to avoid the significant regulatory uncertainty and litigation delay that would result from President Trump’s proposed rollback of federal clean vehicle standards, as well as the importance of reducing emissions in the near-term from the transportation sector – the largest source of greenhouse gas emissions in the U.S. The investors pointed out that the agreement between the states and automakers provides the best available opportunity to address those needs while also positioning the company for competitive success in a global marketplace that is pivoting to cleaner vehicles.

“We urge you to join this compromise agreement,” said the investor signatories in their letter to the company, “which is consistent with GM’s call for a national solution, continuously improving fuel economy, and its stated goal of moving toward zero emissions.”

Despite GM’s public statements, the company has successfully lobbied the Trump administration, both individually and through its trade organization, to roll back the U.S. Corporate Average Fuel Economy (CAFE) and greenhouse gas (GHG) vehicle standards. However, in June of this year, after significant investor engagement, the company joined 16 other automakers to write a letter to the President that, citing the need to avoid regulatory uncertainty, expressed approval for a rule supported by California that is stricter than the standards proposed by the Trump Administration – and that helps promote electric vehicles. The compromise agreement provides these elements.

In July, however, GM failed to join Ford, BMW, Honda, and Volkswagen as they reached a compromise agreement with California – supported by 13 states that have adopted California’s standards – that set standards that were not as stringent as the current standards adopted by the Obama administration and the California standards, but still more aggressive than the significantly weaker standards proposed by President Trump. These companies cited the regulatory chaos Trump’s rollback would cause, as states that have adopted California’s standards represent about 37% of the U.S. market, as well as the business case for investing in cleaner vehicles.

“In New York City, we know that a sustainable planet and a secure retirement go hand-in-hand. As an investor in GM and other U.S. automakers, I am deeply concerned with the fallout of President Trump’s proposed rollback because it would undermine the U.S. auto industry, and result in increased emissions at a moment when we need bold action on climate,” said New York City Comptroller Scott M. Stringer. “General Motors can choose to help lead the U.S. auto sector into the 21st century, or help President Trump drag it backwards while the rest of the world speeds ahead. I, and many other investors, urge them to stand up for our planet and our future. They should join the compromise agreement, without delay.”

“Our denomination has made clear through policy statements its concern of the transportation sector’s impact on the climate crisis,” said Rob Fohr, Director of Faith-Based Investing and Corporate Engagement at Presbyterian Church (U.S.A.). “The compromise solution with California is a step in the right direction, and will enable GM to avoid regulatory uncertainty. We urge GM to follow the lead of Ford, BMW, Honda and VW and join the compromise.”

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