THE CORE DYNAMIC
California is the nation's largest auto market. Under Section 177 of the Clean Air Act, 17 other states have adopted California vehicle emission standards as their own — meaning a regulatory disruption in Sacramento ripples across roughly 40% of U.S. auto sales. GM, Toyota, and other major automakers have publicly warned the California legislature that in-car technology mandate deadlines are unachievable, with new car sales potentially halting as early as July 2026.