July 16, 2024 – General Motors (GM), which announced in 2021 its ambition to achieve a zero-emission target by 2035, now faces uncertainty regarding its milestone plan to have a production capacity of 1 million electric vehicles (EVs) per year in North America by the end of 2025.
In an interview with CNBC on Monday, GM CEO Mary Barra expressed doubts about the company’s ability to reach this production target. She stated, “The market development has slowed down somewhat.” She added, “We won’t be able to reach the production of 1 million vehicles due to market conditions, but we will ultimately achieve this goal. We will be guided by customer demand.”
For the past two years, GM has been emphasizing its goal of achieving a production capacity of 1 million EVs in both China and North America by 2025. However, due to slower-than-expected growth in EV demand, GM has revised or withdrawn several production targets for electric vehicles this year. The 1 million production capacity target remains one of the few unaltered indicators for the company.
A GM spokesperson clarified that the company’s goal refers to production capacity, not the actual production of 1 million EVs in 2025. Barra did not specify whether she was referring to production output or capacity during the CNBC interview.
The spokesperson later stated that GM will no longer reaffirm its 2025 EV production capacity plans and emphasized that its electric vehicle program will be flexibly adjusted based on demand. GM is expected to release its second-quarter financial report on July 23, where more details may be announced.
Industry experts note that achieving such ambitious production targets requires not only significant investments in manufacturing facilities but also a robust market demand for EVs. The recent slowdown in EV demand growth poses challenges to GM’s plans, forcing the company to reevaluate its strategies and adapt to changing market conditions.
Overall, while GM remains committed to its long-term sustainability goals, the road to achieving them appears more uncertain, given the current market trends and challenges faced by the automotive industry.
