Summary
- GM aims to only sell EVs for light-duty vehicles by 2035
- The automaker has backed off current EV sales targets
- GM expects to be the first U.S. automaker outside Tesla to profit from EVs
- GM is on track to make EVs profitable by the end of the year
- The automaker is still committed to eliminating tailpipes and making EVs more affordable
Article
General Motors remains committed to achieving its goal of only selling electric vehicles for its light-duty passenger vehicles by 2035, as announced by CEO Mary Barra. This pledge, made in 2021, is a crucial part of the company’s plan to achieve net-zero carbon emissions by 2040. Barra emphasized that a significant portion of GM’s carbon impact comes from the tailpipe emissions of the vehicles it sells. While heavy-duty trucks with internal-combustion engines may still be sold, the aim is to eliminate tailpipe emissions entirely for light-duty vehicles.
In order to reach this goal, GM has been focused on rolling out its new EV battery and propulsion system, previously branded as Ultium. Despite some challenges in this EV ramp-up process, Barra remains confident that the company is on track to start making EVs profitable by the end of the year. If successful, GM would become the first U.S. automaker, outside of Tesla, to turn a profit on EVs. Barra acknowledged that there have been production issues that have affected the rollout of some EVs, but she believes these are only temporary setbacks.
One key aspect of GM’s plan to make EVs more accessible to consumers is the introduction of more affordable models. Barra mentioned the imminent arrival of a $35,000 version of the Chevrolet Equinox EV, which will provide an affordability option until a new Bolt EV arrives in 2026. The company had previously set a target to have production capacity for one million EVs by 2025, but Barra admitted that the market has been slower to develop than expected. However, she remains optimistic that there is still time for the market to grow and for GM to meet its targets by 2035.
Despite GM’s commitment to transitioning to EVs, Barra has expressed surprise at the political nature that EVs have taken on. She emphasized that GM will not change its course regardless of which political party wins the presidency, in light of the anti-EV stance of some Republicans. However, the company is making changes in other areas, such as moving away from the Ultium name for its EV batteries and components and adopting lithium iron phosphate (LFP) cells to lower costs. These changes are part of GM’s ongoing efforts to make EVs more accessible and profitable.
Overall, General Motors’ goal of eliminating tailpipes from its light-duty passenger vehicles by 2035 remains a key focus for the company. Despite some challenges in the EV ramp-up process, GM is confident in its ability to turn a profit on EVs by the end of the year, potentially becoming the first U.S. automaker outside of Tesla to do so. The company is also working towards introducing more affordable EV models to make them more accessible to consumers. While there have been setbacks in meeting production targets, GM remains committed to its long-term goal of reducing carbon emissions and transitioning to electric vehicles.
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