In a surprise to only General Motors, General Motors’ ambitious goal of producing 1 million all-electric vehicles (EVs) in North America by the end of 2025 is in doubt.
Following recent comments from CEO Mary Barra, the target, once a cornerstone of GM’s new identiy, appears to be faltering due to slower-than-anticipated market demand for EVs.
“We won’t get to a million just because the market is not developing, but it will get there,” Barra said Monday. “We’re going to be guided by the customer.”
This admission marks a significant shift from GM’s previous stance, which maintained that the company would achieve production capacity for 1 million EVs annually in both North America and China by 2025.
Despite adjusting several EV targets and product plans over the past year, GM had held firm on its North American production capacity goal. However, Barra’s recent comments introduce ambiguity about whether the target pertains to production capacity or actual production numbers. According to CNBC, a GM spokesperson later clarified that the target was always about production capacity, not the number of vehicles produced. The company will now abandon the goal in an effort to emphasize its EV strategy remains flexible and responsive to market demand.
On the EV sales front, GM claims 38,355 first-half deliveries, including 21,930 vehicles delivered in the second quarter – both records for the company. Additionally, GM retail EV registrations are up 17% year-to-date, outpacing the retail industry’s 10%. The company is also promising 10 EV nameplates by year-end.
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