GM Is Latest Automaker To Back Down On DEI Pledges

Good morning! It's Monday, February 17, 2025, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.

General Motors has this week followed in the footsteps of Ford, Harley-Davidson and Nissan in bowing to the pressure of bigots and scrapping DEI initiatives. The American automaker has removed all mention of diversity, equity and inclusion from its annual report following widespread hostility towards such measures, led by president Donald Trump.

GM's latest annual report, which is distributes among shareholders, contains no mention of DEI practices, according to the Detroit Free Press. Despite the removal of any mention of DEI, the report still claims that GM fosters an "inclusive work environment," as the site explains:

GM, alongside many prominent public companies that compete for federal contracts, appears to be aligning at least to some extent with President Donald Trump's edict outlawing DEI initiatives in federal government.

A year ago, under the subhead "Human Capital" in its Jan. 30, 2024, 10-K filing, GM said that among its objectives in creating a "workplace of choice" was to "promote diversity, equity and inclusion (DEI)."

That same line, in the Jan. 28, 2025, 10-K filing, now says GM's goals are to "foster an inclusive work environment in which all employees can perform at their best."

The move follows months of hostility towards DEI practices, which has been led by president Trump and his pet billionaire, Elon Musk. The pair have repeatedly attacked schemes to diversify the workforce, with the "Home Alone 2" actor going so far as to blame DEI schemes for a deadly plane crash in Washington D.C.

GM's decision to remove all mention of DEI initiatives from its report follows Ford's backtracking on diversity schemes as well as Harley-Davidson's scrapping of similar programs. Moves like this are sure to please politicians angry that the American workforce might represent the American people, but are unlikely to make America great again. Instead, the Free Press warned that such moves are a "lose-lose" for most companies:

Josh Pasek, professor of communication and media and political science at the University of Michigan, said companies face a lose-lose situation when it comes to taking a stance on diversity programs in the current political environment.

"It's very hard from outside to read the tea leaves to know how much the company is still caring about this but not wanting to make itself a target, and how much is the company only pretending to care in the first place but deciding that's no longer necessary," Pasek told the Free Press. "There may be some organizations that are actually committed to DEI principles in various ways but whose sense of being open and upfront about that might be a political negative and may functionally obscure what they're doing."

GM and legacy automakers might think that following Tesla's lead is the best way to rapidly ramp up their EV sales across America, but I think that's more about creating usable EVs and not about adopting the questionable politics that Tesla boss Musk now champions at every available opportunity. 

While president Trump rolls out all the stops to try and kill emission regulations, slash electric vehicle sales and cut support for EV infrastructure, there's been one bastion of hope standing tall: California. The Sunshine State sings from its own hymn sheet when it comes to many green policies, but Trump is now hell bent and bringing the state in line.

The president is targeting pollution regulation in California that he claims are forcing consumers to buy electric vehicles, reports Automotive News. The regulations will now be subject to additional scrutiny that could allow lawmakers to repeal them, as the site explains:

Environmental Protection Agency Administrator Lee Zeldin said on Feb. 14 he would formally subject the EPA's approval of those California rules to congressional scrutiny, opening the door for lawmakers' expedited repeal of the authorizations. The move responds to a clamor from carmakers, auto dealers and fuel producers calling California's standards unachievable.

At issue are EPA decisions under former President Joe Biden to authorize three California car pollution regulations — including measures governing cars and heavy-duty engines. Those EPA waivers that allowed California to preempt federal standards will now be submitted to Congress for review, a shift from the approach under Biden.

The move empowers congressional Republicans to swiftly repeal the standards using expedited procedures under a law known as the Congressional Review Act. Doing so could effectively wipe away California's Clean Cars II program mandating zero-emission vehicles, ultimately banning the sale of conventional, gasoline-powered cars in 2035.

The rules in California allow it to enforce stricter emissions and environmental standards than the rest of the U.S. Such regulations limit the amount of certain pollutants that can be emitted by trucks operating in the state and encourage the sale of electric trucks, adds Automotive News.

These rules can be enforced as special powers were given to California to preempt federal emissions regulations and even write its own rules. Now, instead of bringing the rest of the country in line with the rules of California, Trump is insistent on dragging the state back a decade or two

California isn't the only place that's feeling Trump's hatred of clean power, as shoppers across the country could soon lose incentives that have sparked the EV revolution in America. Standing by Trump's side while he calls for an end to EV investment and incentives has been Tesla boss Elon Musk, who is reportedly not phased by these decisions despite the impact they will have on his multi-billion-dollar wealth.

Trump's reluctance to support the EV switch and the tariffs he hopes to implement on foreign goods will hit every facet of the American auto industry. It remains to be seen what the scope of these impacts will be on brands like Tesla, but Musk's company is unlikely to come out unscathed, reports Business Insider:

On the tariffs front, Tesla CFO Vaibhav Taneja recently warned that the EV maker is "very reliant" on global parts and Trump's proposed tariffs are expected to impact the company's "business and profitability."

Tesla has a lot to potentially gain from Musk's close relationship with President Donald Trump. Musk, for his part, has largely appeared to shrug off the possible impact of some of Trump's other proposed policy changes, such as ending the Biden-era EV mandate.

"At this point, I think that sustainable transport is inevitable," Musk said on Tesla's most recent earnings call when asked about any potential impact on the company if wider EV adoption slowed. The move to electric vehicles "can't be stopped," he added.

Tesla analysts told Business Insider that Musk appears to be taking the long-term view and that any negative short-term impacts would likely be outweighed by the potential benefits of working closely with Trump — such as gaining an ally in deregulation and formalizing a federal framework for autonomous driving.

Should the bottom fall out of the American EV market, which Musk himself says is unlikely, the backup plan for Tesla will be autonomous vehicles, BI adds. Through his ties to the Trump administration, Musk is reportedly hoping to bring about regulatory changes that could reduce restrictions on the rollout of his autonomous taxi service.

Before he can make the most of any autonomous freedom that Trump grants him, Musk will have to create an actual autonomous Tesla that can drive itself. This is something he's been promising for more than a decade, now, so maybe Musk will be hoping the next administration looks just as favorably on him

After months of questions circling around Stellantis' commitment to production in Italy that even sparked intervention from the country's government, the Fiat owner has reaffirmed its commitment to the region. However, the move comes at a cost to its EV rollout, as the automaker will now use a factory earmarked for EV battery production to create new gearboxes for hybrid cars.

Stellantis is planning to begin assembling new hybrid gearboxes at its facility in Termoli, Italy, reports Automotive News. The move marks a change in direction for the site, which was initially slated to pivot to battery production over the coming years:

Termoli's engine-making plant in one of the sites where Stellantis-led joint venture ACC planned to build one of its three EV battery-making plants in Europe.

But while a gigafactory in France has already started operations and investments continue for its development, plans for two similar facilities in Italy and Germany were officially paused last year, as ACC was switching to lower-cost batteries amid slowing demand for electric vehicles.

Stellantis said Feb. 17 that it would produce electrified dual clutch transmissions (eDCT), a key component for hybrid vehicles, in Termoli to expand its hybrid offerings.The Termoli factory will have an annual capacity of 300,000 transmission annually.

The move was welcomed by unions in Italy, which said that it would secure employment at the site for years to come.