Major development is appearing for Automobile industry from announcement of the state of California that state approved ban the sale of all new gas-powered cars in the future that is a first-of-its-kind rule. By 2035, the California Air Resources Board (CARB) will only permit the sale of new electric and certain hybrid vehicles in the state.
The prohibition on gas-powered automobiles is the toughest to date, both domestically and internationally. The member nations of the European Union are still negotiating the proposal to prohibit the sale of new gas-powered automobiles.
California Governor, Gavin Newsom stated last week “The climate crisis is solvable if we focus on the big, bold steps necessary to stem the tide of carbon pollution.” Newsom proposed the 2035 ban two years before with an executive order that directed CARB and others to determine how to implement the plan.
Ford Motor Company (NYSE:F) Stop Selling Transit Connect Van
Shares of Ford Motor Company (NYSE:F) dropped over 2% in pre-trading session on Monday as it declared that it will stop selling the Transit Connect van in the U.S. by the end of coming year and has scrapped plans to build the vehicle’s next model in Mexico, according to Automotive News.
The Transit Connect small van’s sales in the United States have been declining for some time, and Ford warned last year that a protracted fight over import tariffs paid on the cars may result in fines of up to $1.3 billion.
Ford Laying-Off 3,000 Jobs As It Pivots To EVs: Ford Motor Co. (NYSE:F) has declared that it is cutting off staff affecting around 3,000 jobs around in the U.S. and Canada, and has begun to notify workers through internal e-mail, according to The Wall Street Journal. The cutbacks begin on September 1, according to the automaker. According to reports, Ford had been preparing to restructure itself during the summer in order to focus on electric vehicles.
Farley and Ford Chairman Bill Ford wrote in a joint email, “We are eliminating work, as well as reorganizing and simplifying functions throughout the business. You will hear more specifics from the leaders of your area of the business later this week.”
GM’s plans to return cash to shareholders
On the other side, General Motors Company (NYSE:GM) recently declared that it will resume and increase share buyback from $3.3 billion to $5 billion of common stock. For this positive indication was given for investor but without mentioning specific timeframe.
GM stopped paying its quarterly dividend in April 2020 due to the ongoing coronavirus outbreak. GM is bringing back a dividend more than two years later, but at a much lower level. Beginning in the next month, GM will distribute a $0.09 quarterly dividend. Its last quarterly dividend was $0.38, thus this is a decrease.
GM’s CEO and CFO, Paul Jacobson, said that the company’s choice to be more aggressive with its capital return program and its investment was influenced by the momentum and visibility of several of its key strategic projects.