Newsom slams GM chief over stance on gas-car ban amid California EV push

California Gov. Gavin Newsom on Friday publicly criticized General Motors CEO Mary Barra, accusing her of “selling us out” by backing away from a ban on gas-powered cars and framing the move as a setback to decades of California emissions policy.

Newsom told reporters that Barra had helped lead a push against California’s authority to tighten tailpipe standards, tying the dispute to the state's aggressive push toward electrification. The flare-up comes as California’s landmark clean-car law—pushed to require all new vehicles sold in the state to be fully electric by 2035—has faced growing scrutiny and political headwinds. In October 2023, state officials codified the 2035 deadline, but the rule has since been paused after an intervention by Donald Trump earlier this year.

Newsom framed Barra’s stance as a clash between state authority and a broader corporate pushback against regulations that curb internal combustion engine sales. He argued that Barra’s position undermines decades of California leadership on emissions and regulatory standards established by the California Air Resources Board in the 1960s. The governor’s remarks reflect a wider political contest over how quickly automakers should shift to electric propulsion and how policy should respond to consumer demand and affordability concerns.

GM has consistently defended its strategy as market-driven, stressing that it is responding to what customers want while continuing to invest in electrification. Barra has repeatedly said that the long-term future for American automakers includes a profitable transition to EV production, describing electrification as a north star for the company. GM is routinely cited as the second-largest EV maker in the United States, with its Chevrolet, GMC and Cadillac lines offering a range of electric models.

The dispute also touches on California’s budget and incentive programs. Newsom acknowledged that the state cannot currently fund its own $7,500 tax credits for EV purchases if federal incentives are revoked. Last year the governor warned that California would step in with its own incentives if the federal program disappeared, but the state’s fiscal outlook has grown tighter and lawmakers have not yet allocated a vehicle-specific line item this year.

The back-and-forth has roots in a 2023 legal and regulatory fight over California’s authority to set ambitious emissions rules. A group of automakers challenged the regulation in court, and Barra urged other manufacturers not to join the lawsuit while GM pulled its support when the case intensified. The episode underscores a long-running tension between state-led environmental policy and the auto industry’s market-driven calculus as firms balance regulatory risk with consumer demand for vehicles that meet evolving standards and price points.

In recent public statements, GM has reiterated its commitment to electrification, including models across its Chevy, GMC and Cadillac brands. During a June earnings call, Barra said the company remains confident that EV production will be profitable in the long term, signaling that GM’s strategic emphasis will continue to center on electric-vehicle development even as it responds to current market dynamics. Industry observers note that GM currently trails Tesla in overall EV sales but remains a major player in the expanding U.S. EV market.

The clash between Newsom and Barra arrives at a moment when policy, finance and consumer preferences are intersecting in complex ways for the U.S. auto industry. California’s policy intentions, coupled with national political shifts and shifting consumer appetite, are shaping the pace at which manufacturers roll out new electric offerings and retire older gasoline-powered models. As lawmakers and industry leaders weigh the best path forward, the extent to which government mandates can be aligned with market realities will continue to influence both corporate strategy and environmental goals.