GM CEO Mary Barra Scales Back 2025 EV Production Target Amid Slower Market Demand
Despite A 34% Increase In Q2 2024 EV Sales, GM Revises Its Target Of 1 Million EVs By 2025
With the electric vehicle (EV) market seeing a shift in market trends, General Motors’ (GM) goal of reaching a production capacity of 1 million electric vehicles (EVs) in North America by the end of 2025 is now in doubt, following recent comments from CEO Mary Barra.
GM’s goal of reaching this target has been a cornerstone in its EV strategy for over two years and now appears to be falling victim to slower-than-expected market demand for EVs. Speaking at a virtual CNBC CEO Council event, Barra stated, “We won’t get to a million just because the market is not developing, but it will get there. We’re going to be guided by the customer.”
Moreover, GM is now indicating it will no longer reiterate its EV production capacity plans for 2025 according to a GM spokesperson clarified that the company’s plans will remain adaptable to buyer interest.
This pullback arrives despite positive signs in GM’s EV sales. In Q2 2024, the company reported a 34% increase in EV sales compared to Q1 and a 40% year-over-year growth, with 21,930 units sold. However, these figures still fall far short of the million-vehicle target.
Barra’s comments also hint at a more cautious approach to GM’s long-term EV strategy. In December, she suggested that meeting the target for an all-electric fleet by 2035 would depend on buyer acceptance.
As the United States (U.S.) and Canada saw a moderate 10% growth in EV sales, this growth is still slower than many automakers hope for. Yet, GM will push forward with its EV plans. The company is ramping up production of its Chevrolet Blazer EV and Equinox EV, which it hopes will boost sales. In addition, GM recently received a $500 million federal grant to convert its assembly plant in Lansing, Michigan, to produce EVs.
With many components listed in GM’s EV strategy, the company’s adjustment of its target will underline the complex interplay between corporate goals and the realities of buyer demand. GM’s Q2 earnings report is scheduled for July 23.
If you are looking for the Chevrolet models, we can help you get started. Click Here to find the best deals near you. Want to learn more about EV? Thinking of buying an EV? Head over to EV.com and discover more.