US Companies Line Up Behind Biden... GM Withdraws Support for Trump in Fuel Efficiency Regulation Lawsuit

Baskin-Robbins GM CEO "Will Find the Path to the Future Together with Biden"
Blackstone Chairman, a "Strong Trump Supporter," Also "Ready to Help Biden"

President-elect Joe Biden [Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the U.S. presidential transition process accelerates, major American corporations are flocking to President-elect Joe Biden. With the U.S. General Services Administration (GSA) notifying Biden’s transition team to begin the transfer of power, preparations for the next administration’s launch are expected to speed up, prompting companies to align themselves accordingly.

According to the Wall Street Journal (WSJ) and others on the 23rd (local time), General Motors (GM), the largest automaker in the U.S., announced it would withdraw its support for the Trump administration’s lawsuit seeking to invalidate California’s vehicle fuel efficiency regulations. The Trump administration, which had relaxed the stricter fuel efficiency standards imposed by the Obama administration, had been engaged in litigation against California’s independently strengthened emissions reduction standards. GM, along with Toyota Motor Corporation and Fiat Chrysler, had supported the Trump administration in this lawsuit since October 2019.

GM’s decision came after CEO Mary Barra held a video conference with President-elect Biden and other business leaders last week. In a letter sent to leaders of major U.S. environmental organizations, Barra stated, “I believe President-elect Biden, the state of California, and the U.S. automotive industry can find a shared path toward an all-electric future,” announcing the withdrawal of support for the lawsuit. She also urged other automakers such as Toyota and Fiat Chrysler to take similar actions and revealed that she had spoken with Mary Nichols, Chair of the California Air Resources Board and a leading candidate for Biden’s Environmental Protection Agency Administrator. Additionally, Barra pledged to support the introduction of electric vehicles, contributing to job creation under the Biden administration.

President-elect Biden welcomed GM’s decision, stating, “This move by GM will create positive ripple effects that help our country lead ahead of global competitors, create well-paying domestic jobs, and reclaim leadership in innovation and manufacturing.”

Stephen Schwarzman, CEO and founder of Blackstone, the world’s largest private equity firm and a strong supporter of President Trump, also expressed in a statement to the U.S. online media Axios on the same day, “I supported President Trump and the strong economy he built,” but added, “Like other business leaders, I am ready to assist President-elect Biden and his team as they face the enormous challenge of rebuilding the economy after COVID-19.” Axios described Schwarzman’s remarks as “a meaningful message from a business leader within Trump’s circle.”

Earlier that morning, before the GSA notified the start of Biden’s transition, 164 American business leaders including David Solomon, CEO of Goldman Sachs, and Larry Fink, Chairman and CEO of BlackRock, pressured President Trump through an open letter, stating, “Failing to transfer resources and critical information to the next administration endangers the public and economy of the United States,” urging him to expedite the transition process.