Toyota on Friday gave the first indication of renewed pushback against California's ability to impose stricter emissions standards and limit sales of gasoline vehicles.
“Right now, it looks unlikely,” said Toyota North America COO Jack Hollis speaking to CNBC and other media outlets, regarding California's rules that require 35% of model year 2026 vehicles in those voluntary states that comply with California. go electric, on track to end sales of most new cars with internal combustion engines by 2035.
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According to the California Air Resources Board (CARB), which sets state emissions standards, 12 other states and the District of Columbia have signed stricter regulations. But Hollis argues that there isn't enough demand to support these goals, and that they are leading to “unnatural practices” where automakers are sending a disproportionate number of electrified vehicles to California's conservative states.
This comment is especially important for its time. After fighting California's ability to set stricter emissions targets, Toyota agreed in principle to a 2022 deal with CARB. For passenger cars and trucks, little has changed in CARB's high-level emissions regulations yet, and signs of EV demand are showing. higher than six to 12 months ago. But now that Donald Trump has won a second term, Toyota seems to have the courage to start again.
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Toyota has tried, along with the previous Trump administration—along with GM, Stellantis' predecessor company, and several other foreign automakers—to strip California of its authority to set its own emissions standards. Ford, Honda, BMW, VW, and Volvo were among the companies that did not try to overturn California's ability to fight carbon dioxide under its own terms—they joined the state instead of the agreement.
While Toyota has been pushing for hybrid volume, not EV volume, all this time, GM's move remains highly controversial. It has continued to try to undermine California's laws in the background—while pushing for an EV, non-hybrid future, while being criticized by Trump for a plan that won't work.