Newsom slams GM chief as California's EV push collides with market reality

California Governor Gavin Newsom on Friday criticized General Motors Chief Executive Mary Barra, alleging she sold out California by backing away from a plan to ban gas-powered cars. GM says it is responding to what drivers want, a stance Newsom framed as evidence of a widening gap between consumer preferences and the state's aggressive push toward electric vehicles. California's emissions policy has a long arc, beginning with the state’s early leadership in tailpipe regulation and culminating in an October 2023 decision that all new vehicles sold in the state be fully electric by 2035.

The 2035 rule has faced scrutiny and, after intervention by Donald Trump earlier this year, is paused. Newsom used a Friday press conference to tie Barra to what he described as a rollback of California's authority on emissions standards.

GM has continued to emphasize its electric-vehicle program while noting market realities that influence the pace of transition. The company has stressed that the long-term profitability of EVs remains central to its strategy, a message reiterated during its June earnings call. GM is the second-largest EV maker in the United States, with a portfolio across Chevrolet, GMC and Cadillac.

In May 2025, GM urged thousands of salaried employees to lobby lawmakers to overturn the ban on selling new gas cars in California, arguing that emissions standards not aligned with market realities threaten consumer choice and vehicle affordability. A GM spokesperson said the company remains committed to customer choice and declined to comment on Newsom's remarks.

GM's high-profile EV model lineup includes the Hummer EV, part of its GMC brand, and the company has highlighted the performance of the Hummer EV, which can accelerate from 0 to 60 mph in about three seconds. The Hummer model is produced at a Michigan-based battery plant, underscoring GM's significant EV manufacturing footprint. Across Chevrolet, GMC and Cadillac, GM has positioned itself as a major player in the United States' EV transition, with the second-most EVs sold behind Tesla.

Historically, GM supported California's push in 2023, even as a group of automakers filed a lawsuit to overturn the regulation. Barra later urged automakers not to join the lawsuit and GM's stance shifted as the company faced years of mixed support for EV incentives and broader policy. Barra has stated that the long-term future of profitable EV production remains GM's north star.

California's budget shortfall means the state cannot fund additional incentives for new EV purchases in its current fiscal plan. Newsom noted that California would consider stepping in with incentives if federal programs such as the $7,500 federal EV tax credit were revoked, but the state's current budget constraints prevent a vehicle-specific line item.

The clash underscores a broader political dynamic in US politics: a clash between aggressive state-level environmental goals and a prominent segment of the automotive market that continues to reflect strong demand for gasoline-powered vehicles. As policymakers weigh the pace of the energy transition, automakers like GM emphasize market realities and the need for a balanced approach that protects consumer choice while pursuing environmental objectives. The outcome of these debates could influence how quickly the country moves to scale up EV production and how incentives are structured at both state and federal levels.