General Motors responded to President Barack Obama's address on climate policies Monday, saying it was working aggressively to develop better hybrids and electric cars to reduce emissions and improve mileage.

Today, Obama ordered the Environmental Protection Agency to move forward to allow California to impose its own strict limits on vehicle emissions of Carbon dioxide, which is seen as contributor to global warming. It is expected that as many as 18 other states follow California's new regulations.

The federal government must work with, not against, states to reduce greenhouse-gas emissions, Obama said at a press conference in the White House Monday.

Today's statements represent a sharp change from ex-president George W. Bush's climate policies. Obama's push also adds pressure to troubled auto makers to produce more fuel-efficient and less polluting cars as they face a slump in sales.

We're ready to engage the Obama administration and Congress on policies that support meaningful and workable solutions and targets, GM said in a statement.

Last week, GM reported its total global sales in 2008 dropped 11 percent compared with 2007 due to a downturn in the economy which has tightened credit and reduced the prices of commodities.