GM Goes Slow on EVs as Rivals Fight Price War |
DETROIT, 31 January (Reuters) – General Motors ( GM.N ) Chief Executive Officer Mary Barra electric for North America car is betting that moving more slowly than Tesla or Ford to speed up production will be more profitable in the long run.
Suppliers familiar with GM’s production plans until 2025, car while continuing to rake in cash from its maker’s large combustion-engined pickups and SUVs, electric car supports the view that it continues to slowly step up its investment and production.
GM in 2023, according to data collected by AutoForecast Solutions USA, plans to produce a total of 170,000 EVs at its plants in Canada and Mexico, and 285,000 in 2024. actual capacity is 1 mln.
“GM knows it needs to look like a tech company on Wall Street and boost its stock price by talking about its EV future… but its bread and butter remains large pickup trucks and V8-powered SUVs. the company’s bottom line,” said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.
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GM is introducing four new electric vehicles this year – one pickup truck and three SUVs – and four more in 2024, but most will be produced in relatively low volume until 2025, according to AFS.
GM on Tuesday stuck to its plan to produce a total of 400,000 electric vehicles for North America between 2022 and the first half of 2024. Most of those 400,000 vehicles will be produced starting later this year, Barra and GM Chief Financial Officer Paul Jacobson said. conference calls.
GM says it is supplying all the battery materials it will need to produce 1 million EVs a year in North America by 2025. Tesla ( TSLA.O ) this week expanded its Nevada battery plant to support 2 million vehicles by 3.6 billion dollars stated that he invested. annual production.
BATTERIES
With GM partner LG Energy Solution (373220.KS). USAis building three battery plants in , and Barra said the automaker will need more. But it’s GM’s USAdeclined to say when it would move forward with plans for a fourth battery factory in .
In contrast, Ford(FN) announced Monday plans to cut prices of its Mustang Mach-E electric SUV by up to 8% and confirmed it aims to sell 600,000 EVs annually by the end of 2023. Ford had previously set a target. Bringing North American production for the Mach-E to 130,000 vehicles this year.
By this fall, Ford plans to expand the production capacity of the F-150 Lightning electric pickup to 150,000 vehicles per year.
In the short term, GM’s slow approach could allow it to sidestep the price war Tesla launched earlier this month. Investors pushed the stock up more than 7% Tuesday on GM’s approach and upbeat financial forecasts.
Orders are strong for GM’s new electric vehicles, such as the GMC Hummer pickup and SUV, the Cadillac Lyriq and the electric Chevrolet Silverado pickup, Barra said.
Based on the current interest in these models, “our pricing was very appropriate,” Barra told analysts on the call.
Overall, Barra and Jacobson said, GM will try to avoid a discount by keeping inventory of all vehicles — combustion-powered and electric — more tightly this year than in the past before the pandemic. Jacobson said GM wants to end the year with 50 to 60 days’ worth of vehicles in U.S. dealerships, which is more than normal in 2019. 20-30 days less.
Production of GM’s newest electric vehicles is slowly ramping up. GM delivered a total of 122 Cadillac Lyriq SUVs and 854 Hummer pickups last year.
Production of the electric Hummer SUV began this week, GMC brand chief Duncan Aldred said Monday. The division has 90,000 reservations for high-performance Hummer EVs, which will be sold next year, he said.
Reporting by Joe White and Paul Lienert Editing by Nick Zieminski
Our standards: Thomson Reuters Trust Principles.
2023-01-31 20:19:17
Source – reuters
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