The state of California will ban new, gas-powered vehicles beginning in 2035, setting in motion changes to the automotive industry that could impact folks in Idaho and around the country.
On September 23, 2020, California Governor Gavin Newsom issued an executive order to require all new cars and trucks sold in the state to be “zero emission” by 2035. Effectively, giving automobile makers worldwide just 15 years to transition to electric vehicles.
Whether one agrees with Governor Newsom or not, his motivation is clear.
“This is the most impactful step our state can take to fight climate change,” said Governor Newsom. “For too many decades, we have allowed cars to pollute the air that our children and families breathe. Californians shouldn’t have to worry if our cars are giving our kids asthma. Our cars shouldn’t make wildfires worse –and create more days filled with smoky air. Cars shouldn’t melt glaciers or raise sea levels threatening our cherished beaches and coastlines.”
California Has Influence
Idaho is Maverick Car Company’s home, and, frankly, for many in our state California can feel like it is a long way away, but California has influence, and Governor Newsom’s executive order will almost certainly impact vehicle buying in Idaho over the next decade and a half.
Consider these two facts.
No. 1: California —all by itself— is the fifth largest economy in the world.
In 2019, the United States, as a whole, had the largest economy in the world with a nominal gross domestic product (GDP) of $21.44 trillion, according to Investopedia, followed by China, Japan, and Germany.
| 2019 Nominal GDP in Trillions | |
| United States | $21.44 |
| China | $14.14 |
| Japan | $5.15 |
| Germany | $3.86 |
| California | $3.2 |
The State of California had a nominal GDP of $3.2 trillion in 2019, making it a larger economy than India, the United Kingdom, France, Italy, Brazil, Canada, and Russia. In fact, California’s nominal GDP is roughly the same size as Canada and Russia combined.
No. 2: Californians Own a Lot of Cars
As The Wall Street Journal pointed out, Californians had about 11 percent of all cars and trucks registered in the United States.
That means that just more than one out of every ten cars or trucks in the total United States, are in California.
Car Makers May Be Ready
Given the size of California’s economy and the percentage of cars and trucks its residents own, auto manufacturers are certainly going to pay attention to Governor Newsom’s order.
In fact, according to The Wall Street Journal, “a spokesman for Ford Motor Co. said: ‘We agree with Gov. Newsom that it is time to take urgent action to address climate change….Progress requires public-private partnerships, smart infrastructure and key resources that encourage consumers to invest in electrified products.’”
How It Will Impact Idaho
From the perspective of September 2020, exactly how this will impact car or truck buying in Idaho is not perfectly clear, but it may be enough to point out that California’s ban on gas-powered vehicles, is likely to extend to the entire country in its effect.
This might be good news, since electric vehicles can be more performant than their gasoline-powered counterparts. For example, it is common for electric trucks to have more torque than gas or diesel trucks, at least on paper.