Sidetracked with their EV losses, GM is still trying to recover.
General Motors’ ambitious goal of producing 1 million all-electric vehicles in North America by the end of 2025 is now in serious doubt following comments from CEO Mary Barra on Monday.
🔵 GM NOT REITERATING 2025 1 MILLION EV PRODUCTION CAPACITY FORECAST
General Motors on Monday declined to reiterate its previously announced forecast that it would have 1 million units of electric vehicle production capacity in North America by the end of 2025.
Full Story via… pic.twitter.com/dkEeTrZmE1
— PiQ (@PiQSuite) July 15, 2024
The target for next year’s production capacity was one of the last EV goals that GM had not adjusted or withdrawn, as the demand for EVs has not grown as quickly as companies like GM had anticipated.
“We won’t get to a million just because the market is not developing, but it will get there,” Barra said during a virtual CNBC CEO Council event. “We’re going to be guided by the customer.”
For over two years, GM has stated it would have the production capacity for 1 million EVs each in China and North America by 2025. Even after altering or withdrawing several EV targets and product plans over the past year, the company had maintained that it would install the necessary capacity for EV production in North America.
This analysis demonstrates how General Motors’ CEO Mary Barra @GM misled investors to not risk a reduction in her 2023 compensation.
Mary Barra withdrew her “one million EVs by end of 2025” target.
The attached analysis shows how unattainable this target has been for many… pic.twitter.com/s00XWK1CYH
— AJ (@alojoh) July 16, 2024
A GM spokesman clarified that the company’s target was about production capacity, while the question was regarding the actual production of 1 million EVs in 2025. Barra did not specifically address whether she was referring to production or production capacity.
The spokesman later stated that GM would no longer reiterate the EV production capacity plans for 2025. The company has consistently emphasized that its EV plans will remain flexible to meet market demand.
GM’s 2025 EV production capacity target in doubt after Barra comments https://t.co/pmqDc63L5J pic.twitter.com/AEJW8o5CYr
— The UCW Newswire (@UCWNews) July 16, 2024
More details about GM’s EV plans are expected to be revealed when the company reports its second-quarter results on July 23.
Major Points:
- GM’s goal of producing 1 million EVs in North America by 2025 is in doubt due to slower-than-expected market development.
- CEO Mary Barra indicated that while the market isn’t developing fast enough to meet the target, it will eventually grow.
- For over two years, GM has aimed for production capacity of 1 million EVs in both China and North America by 2025.
- A GM spokesman clarified that the target was about production capacity, not actual production of 1 million EVs in 2025.
- GM will no longer reiterate the 2025 EV production capacity plans, with more details expected in their second-quarter results on July 23.
Conner T – Reprinted with permission of Whatfinger News
