GM lowers 2024 EV production goal after killing its most popular EV

General Motors does not expect to build as many electric cars as initially planned this year. On Tuesday, CFO Paul Jacobson announced GM aims to build 200K to 250K EVs in 2024, down from its previous target of 200K to 300K, citing slower-than-expected EV demand in the US.

At the Deutsche Bank Global Auto Industry Conference Tuesday, Jacobson said GM will continue to produce cars based on demand.

Although demand for electric vehicles is still growing, it’s less than some in the industry had expected, including GM.

GM now expects EV production to be in the 200,000 to 250,000 range in 2024. That’s down from the previous 250,000 to 300,000 target and even more from the initial 400,000.

The comments come after CEO Mary Barra called 2024 “the year of execution” earlier this year as it looked to get back on track. After selling only 75,883 electric cars last year, GM missed its 100,000 EV sales goal.

Despite software glitches and freight delays derailing GM’s momentum last year, Jacobson said in March, “I think most of those are behind us.”

GM expects lower 2024 EV production in the US

At the event Tuesday, Jacobson commented on the revised 2024 EV production target, saying, “So at the lower end of that, and I think it reflects the momentum that we have in the business.”

GM expects US EV sales in 2024 to be around 8% of the industry, lower than the 10% many are forecasting.

Meanwhile, GM’s financial leader still expects EVs to be variable profit-positive at the lower-end 200K target. According to Jacobson, that’s still expected by the end of 2024.

GM has a wide range of new EVs rolling out this year. With deliveries kicking off last month, the Chevy Equinox EV joins the Blazer EV and Silverado EV as GM’s latest all-electric models.

With a $35,000 model coming later this year, GM claims the Chevy Equinox EV is the most affordable in its class with up to 300 miles range.

GM will unveil the next-gen Chevy Bolt EV next year. When it arrives in 2025, the company believes it will be even more affordable and advanced.

In other news, GM’s board approved a $6 billion share repurchase plan Tuesday as it looks to grow and improve EV profitability.

Source: CNBC