GM Expects EVs to be Profitable Past 2025, But Affordability Remains an Issue
General Motors has lot quite a bit of money with the Chevrolet Bolt EV, and that’s not even counting the massive battery recall of 2021-2022 that cost the automaker nearly $2 billion USD. Yet, GM president Mark Reuss recently said he expects EVs to be profitable past 2025.
Before we go any further, you should know that GM built some 50,000 EVs in North America during the first half of the year and is aiming to double that in the second half.
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The company is banking on economies of scale coming from its new Ultium modular platform and batteries, which can be adapted to all sorts of vehicles. Battery deals with LG Energy Solution and Samsung SDI will help, too, and don’t forget about the Inflation Reduction Act (IRA) in the U.S., which prioritizes local production and therefore boosts American EV sales.
GM anticipates to have built around 400,000 EVs by the middle of next year and to increase its annual capacity to 1 million units starting in 2025.
New Petition Calling for Cheap EVs
A number of consumers fear that GM’s quest for profitability will come at the expense of low-price EVs. In fact, a petition was launched in the U.S. a few days ago urging the company to commit to making affordable models.
More specifically, it focuses on the upcoming 2024 Chevrolet Equinox EV, which was initially announced with a base price of around $30,000 USD (under $40,000 in Canada). The petition, which is still collecting signatures and will be delivered after the North American International Auto Show in Detroit, aims to remind GM that it promised to make "EVs for Everyone."
When announcing adjusted pricing on the 2024 Chevrolet Blazer EV last month, the automaker disappointed many people with the elimination of the base 1LT model, thus affecting affordability. The same cannot happen with the Equinox EV, the petition claims.
As for the Bolt EV (and Bolt EUV), production is slated to end this fall, killing a cheap and compelling option for customers. A new generation has now been confirmed, but it likely won’t arrive before mid-decade.