The days of the internal combustion engine were numbered.
General Motors said on Thursday it would phase out petroleum-powered cars and trucks and by 2035 only sell vehicles that have no exhaust fumes, a seismic shift by one of the world’s largest carmakers that today makes billions of dollars from fuel trucks and sports utility vehicles.
The announcement could put pressure on carmakers around the world to make similar commitments. It could also encourage President Biden and other elected officials to pursue even more aggressive policies to combat climate change. Leaders can point to GM’s decision as proof that even large corporations have decided that it’s time for the world to start turning to fossil fuels that have been driving the world economy for more than a century.
Several other automakers, most of them European, had earlier said modest steps in the direction of GM. Daimler, which makes Mercedes-Benz cars, said it would have an electric or hybrid version of each of its models by 2022, and Volkswagen had promised an electric version for each of its models by 2030.
Electric cars represent the fastest growing segment of the automotive industry, but they still make up a small portion of new car sales: according to the International Energy Agency, they account for about 3 percent of the global total. Sales of such cars rose in Europe and China last year, but they remain niche products in the United States. They are bought primarily by affluent early adopters who focus on the luxury models that Tesla manufactures, which dominate the business, and by environmentally conscious consumers.
GM said its decision to switch to electric cars was part of a broader plan to become carbon neutral by 2040. The announcement comes a day after Biden signed an executive order to intensify the fight against climate change, including an order for the federal government to electrify its large vehicle fleet.
“General Motors joins governments and companies around the world to establish a safer, greener and better world,” said Mary T. Barra, GM’s chairman and CEO, in a statement. “We encourage others to follow their example and make a significant impact on our industry and on the economy as a whole.”
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GM said it would increase the use of renewable energy, and eliminate or compensate for emissions from factories, buildings, vehicles and other resources.
The company plans to spend $ 27 billion over the next five years on the launch of 30 electric vehicles, including an electric Hummer pickup that is expected to deliver to customers later this year.
GM shares jumped after its announcement and were up more than 4 percent around 2pm, reflecting a growing consensus among investors that electric cars represent the future and that Tesla and other electric car manufacturers will eventually dominate the car industry, while businesses that do not the the transition to electricity will fare badly.
The company said it is working with the Environmental Defense Fund to build charging stations for electric cars and convince drivers to switch to electric cars.
“EDF and GM have had some important differences in the past, but this is a new day in America – one in which serious cooperation to achieve electrification of transportation, science-based climate progress and a fair shared economic opportunity can promote our country , “the president said. of the group, Fred Krupp, said in a statement.
Jack Ewing reported.