Eco GM

The Trump administration decided to try to effect an act which to will completely mitigate any
potential effects of President Obama’s long-term emissions plan. This post, however, will not
have much to do with Trump. GM burst unto the scene this past week in adamant opposition to
president Trump’s plan; in fact, they had a little idea of their own. The company decided to
implore Washington to forego its current plan in favor of a new nationwide mpg requirement (by
company), whose standards would increase until 2025. The plan could induce a shift to zero-
emission vehicles (ZEVs), and explicitly requires ZEV to account for 25% of a company’s
production by 2030. It seems odd for a company like GM, who consistently sells upwards of 8
million gas vehicles annually, to advocate for an electric revolution. Also, what does this mean
for both the automobile industry, and how will it affect our lives day-to-day?
As you probably expected, GM is most likely not acting out of the goodness of its heart, nor out
of an insatiable desire to save mother earth. While these factors may play in a bit, the potentially
more relevant motives stem from marketing and industrial competition. From a brand
recognition perspective, GM desires to keep its loyal generational customers while defining itself
with the younger generations; to maintain its position as top global car manufacturer, GM knows
it needs to advertise to the next generation of car buyers. Since the millennials’ market presence
already approaches 30%, and is expected to far surpass that number in coming years, GM acts in
its own self-interest and advertises to this new demographic of environmentally friendly
consumers. In addition, GM will only grow its own ZEV market share, as its sub-brand
Chevrolet has already produced two eco-friendly cars and intends to continue this progress.
While GM may have been acting in neither its consumers’, nor the environment’s best interest,
the consequences of the company’s proposal would undoubtedly have an interesting effect on
both. The potential for environmental progress through ZEV’s is well-documented and
established, but the effects on the car industry and on us as consumers may go a bit deeper. A
shift toward eco-friendly vehicles could have an impact in both the social sphere, and personal
economics. Socially, this burgeoning trend could either come into style very quickly, which
could have a broader effect of making “doing good” very popular. We could also experience the
opposite, in which the populous and the media shun the new development and no such positive
social trends develop. Economically, while gas vehicles cost less up-front, the long-term savings
with electric costs outweigh the initial price difference. Therefore, we might end up even seeing
some positive personal financial benefits, alongside the potential for a shift in the popularity of
“goodness.”