Uncertainty Surrounds GM's 2025 EV Production Capacity Goal Following Barra's Remarks

Money | July 15, 2024, 5:54 p.m.

General Motors' ambitious goal of producing 1 million all-electric vehicles in North America by the end of 2025 is now in serious doubt, according to CEO Mary Barra. Barra made comments at a recent event indicating that the market for EVs is not developing as quickly as expected, leading to a potential shortfall in reaching the production target. Despite previously setting targets for EV production capacity in both China and North America, GM has been forced to revise or withdraw many of these goals due to sluggish demand. While the company maintains flexibility in its EV plans to align with consumer demand, it is clear that meeting the milestone of 1 million EVs by 2025 will be a significant challenge. Further updates on GM's EV strategy are expected to be revealed during the second-quarter results on July 23.