After General Motors‘ announcement on the future of their auto-making, one can’t help but think about the bigger picture. First of all, there is the imagination of how the gasoline-powered car market will look like come 2035 without a key player such as GM. There is also the target of being carbon neutral by 2040. If those things were to be achieved, the renewable energy sector would never be the same again. How would it twist the economy in the long run? Those thoughts are exciting, no doubt.
Initially, GM had announced that it could be investing up to $27 billion in the EV sector in the course of the next five years. Why is the recent announcement termed broader than the investment proposal then? First of all, almost every big company in this industry has a similar investment plan. Combined, they are planning to invest about $257 billion in vehicles emitting low or zero emissions by 2030. So, one would say that it is the new norm for the automakers.
However, GM is the first automaker to commit. It is now working with deadlines, which is a bold step. Where does it leave its auto-making counterparts such as Toyota and Ford? They are under pressure to follow suit, and they are likely to cave in within no time. After all, Wall Street seems to have appreciated GM’s move, and the increase in their stock says that loud and clear. With such commitment, the transition to electric vehicles becomes unstoppable.
It changes the standards in the sector since investors will now want more tangible proposals as we advance. It is interesting just how things could change, and GM is an excellent example. It has been against pollution rules for a couple of decades so far. When Trump relaxed the fuel efficiency standards, the company gave him full support. However, something, though it remains a mystery, must have happened after the last elections. GM changed its goal post and started promoting the transition to clean energy in ways one wouldn’t have imagined. Why it is happening is unclear, but it must be significant for such an about-turn.
Other parties, besides car manufacturers, are also going to have to come up with elaborate plans. They include gas and oil companies. After all, without cars to fuel, they have no other choice but to shape in or shape out. They will most likely go for the former option. The same case applies to car spare parts suppliers. It will mean getting rid of engines and in their places put power systems, motors, and batteries. With such changes, the transition to electric vehicles becomes more manageable and quicker.https://industribune.net/