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GM Scraps EV Production Due To Weaker Demand In The Sector
General Motors is joining the growing list of automakers that are slashing their EV targets. According to CEO Mary Barra, demand for electric vehicles is weaker than expected.
Many car manufacturers are seeing sales of electric cars continue to increase, but at the same time, growth is increasingly lower than expected. This also applies to General Motors. CEO Mary Barra tells CNBC that it is therefore time for General Motors to abandon a production target.
GM wanted to reach a production capacity of one million EVs per year by 2025, but according to Barra, that need is no longer there. “We won’t get to a million because the market is simply not evolving.” Still, Barra remains hopeful that such a number will eventually be reached, but the question remains: “We will get there. We are guided by the consumer.”
General Motors announced in the fall of 2020 that it would expand several American factories for the production of electric cars. Initially, 2 billion dollars were made available for this; shortly afterwards, the company announced that it would invest 27 billion dollars in the development of the electric model range. GM also seems to be going to serve the European market with several electric models. The electric Cadillac Lyriq (see photos above) and Chevrolet Equinox are said to be the biggest contenders for this.
