Toyota Motor Corporation (NYSE:TM)
Toyota Motor Corporation (NYSE:TM) has made significant progress by recognizing California’s right to establish its own vehicle emission regulations under the federal Clean Air Act. A deadlock that began during the Trump administration has finally been broken.
The manufacturer submitted to the California Air Resources Board’s climate policy directives on August 23. It declared its eagerness to collaborate with the California Air Resources Board and the State of California toward their mutual goal of achieving greenhouse gas reduction and carbon neutrality.
This comes as a bit of a surprise, given that the corporation backed the Trump administration in 2019 when it sued to overturn mileage laws and strip California of its authority to set its own emission standards. Customers were taken aback by the choice because Toyota Motor Corporation (NYSE:TM) has long advocated producing environmentally friendly vehicles. Many people stopped buying the company’s cars after it. General Motors Co. (GM), a competitor of Toyota, joined the 2019 case against the state as well. However, GM reversed course and abandoned the lawsuit not long before promising to deliver only emission-free automobiles by 2035.
After Trump’s unpopular proposal, the EPA reinstated California’s entitlement to the Clean Air Act waiver it was granted in March 2013. The state’s regulations on tailpipe emissions have been adopted by 17 other states, and 15 others will follow its regulations on zero-emission vehicles. As of 2035, California plans to outlaw the sale of all new gasoline-powered passenger vehicles.
The Biden administration has been very involved and enthusiastic about the country’s electrification efforts, and it has mandated that automakers raise fuel economy to roughly 49 miles per gallon by 2026. Automotive manufacturers have lent their backing to the ambitious project. As a result, consumers can be assured that Toyota Motor Corporation (NYSE:TM) is not the odd participant in the country’s unified electrification push, thanks to Toyota’s declaration, even though it contradicts its 2019 stance.
As the California Air Resources Board is set to adopt new regulations this week, the announcement to support the state’s emissions standards is timely. If the regulations are accepted, they will be sent to the EPA for final review.
Furthermore, the recently enacted Inflation Reduction Act offers incentives for using a wide variety of clean energy sources, such as energy storage, nuclear power, and clean energy vehicles, so long as they produce no net carbon emissions. Automobile manufacturers are rushing to bring the production of EVs and batteries back to the United States to take advantage of the government’s generous incentive programme in light of the new law.
The bill stipulates that the federal government will invest $369 billion in clean energy and climate change mitigation projects. When it comes to promoting and making the switch to renewable energy, this is the most federal funding ever pledged. The bill, which aims to reduce greenhouse gas emissions by roughly 40% from 2005 levels by 2030, is one of the country’s most consequential climate bills ever passed.
Toyota’s commitment to electrification is strong. Its electrification push in the country is being supported by a $5.1 billion investment announcement made last year. As part of its commitment to developing hybrid-electric powertrains and engine capacity, the company has pledged about $473 million for 2018. So, it stands to reason that the Inflation Reduction Act’s incentives and the perks of taking the government’s side will help the business. The company’s submission to California’s jurisdiction may qualify it for state fleet purchases.
Comparatively, the technology sector fell 29.2% over the past year, while Toyota Motor Corporation (NYSE:TM) shares dropped 10.3%.
Featured Image: Megapixl @Dreammediapeel
Author Shariq Khan 
