GM CFO Paul Jacobson recently gave at fireside chat the Citi 2024 Global Industrial Tech and Mobiliti Conference in Miami Beach, addressing a number of important issues, including the automakers’ strategy on EVs. During the address, Jacobson indicated that consistent quality and stable pricing would make EVs profitable, while pointing out some of the differences in General Motors’ approach to all-electric vehicles versus other automakers, including Tesla. Jacobson also stated that General Motors expects to sell between 200,000 and 300,000 EV units this year.
“I think people are focused on comparing GM’s EVs to Tesla. And I don’t think that’s the right comparison,” Jacobson said. The General Motors CFO said a better comparison would be to compare Tesla in its early years to GM’s current position, adding that General Motors has invested quite a lot into its EV ambitions, including joint venture battery plants like the Ultium Cells facilities in Michigan, Ohio, and Tennessee, as well as expanded manufacturing and assembly capacity for all-electric vehicles. Jacobson also indicated that General Motors is well positioned to take advantage of the producer tax credits for battery cells.
“And now our job is to grow into it,” Jacobson said, adding that GM expects a 60-point margin improvement for its EV portfolio and a mid-single-digit profitability by next year.
Jacobson also addressed EV adoption rates.
“We’ve got to be careful not to blindly play the volume game. And, you know, we’re carefully looking at what adoption looks like, but also what the demand for our vehicles are,” Jacobson said.
As for products, Jacobson said that GM’s Ultium-platform-based EVs were superior to “many of the non-Tesla EVs that have come to market” that were “rushed” and were not built from the ground-up as all-electric vehicles, adding that GM “[doesn’t] need to grow significantly in the market to get 200,000 to 300,000 vehicles out there this year.”
“We think we can do it with stable pricing,” Jacobson added.
Finally, we should also mention that some teething issues for certain GM EVs could throw a wrench into the automaker’s plans, including an emerging bad reputation for the new Chevy Blazer EV.
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Comments
by stable they really mean marry msrp barra increases all the time for no reason. thats what stable means. stable price hikes on things already up there.
How will EV’s perform after an EMP?
A Carrington Event might be the best thing that could happen to humanity at this point.
Same way ICE cars that also rely on electronics to work would fair.
About the same as an ICE vehicle.
Mary must work at all automakers because all of there prices have increased.
“GM CFO Says High Quality And Stable Pricing Will Make EVs Profitable”
Well cumulatively, EV sales leader Tesla has cut their prices 25% in the last 16 months to prop up demand. Ford just lopped $3500 off the Mach E to help move the 360 day supply they have on the ground.. Ford also cut Lightning prices up to $15,000 because it’s not selling either.
Apparently Mr. Jacobson must believe gm’s EV products will be immune to everything that’s occurring in the market place. That or he lives in fantasy land.
Now list all ICE cars having to offer discounts to move them.
ICE sales are down 2 million units in the US alone from 2019 to 2023. More if you look at peak auto sales in 2017/2016 timeframe.
Meanwhile 2019 to 2023 saw EV sales increase almost 1 million units.
Trinity Cadillac of Englewood NJ with their 48 Lyriqs sitting there with no sold signs on them would like to have a word with you.
As for your “Meanwhile 2019 to 2023 saw EV sales increase almost 1 million units.” Uhhh yeah. If I first start a bakery of non GMO bread then yes I am going to have a hike in sales when I start from zero. The problem is convincing the mass market which I need for further growth that my non GMO bread is worth eating. And that is what’s happening now in the EV market. The gotta have it crowd has them now. Everyone else in the mass market not willing to spend Cadillac prices for a Chevrolet with less range and conveniences is not interested.
That dealership has 95 total new vehicles so more ICE vehicles than EVs sitting on the lot. Plus about 73 used vehicles. Seems like they are having a harder time selling ICE vehicles.
Apparently you missed to the entire point of discussion. The CFO is counting on stable pricing in the EV MARKET which is clearly not true.
ICE will take their sales/pricing lumps too due to affordability issues but that wasn’t the point of the article. I’d say good attempt at deflection but it really wasn’t.
GM had about 75k of those million units, whoopee! In 2024 Lyriqs with their unusable rear seats and high pricing are sitting on dealer lots. Blazers EV’s are on a stop sale because the software is trash, Silverado EV’s are 2 years behind schedule. and I’m sure the Equinox EV suffers the same problems as the Blazer.
This must be the high quality, and with no sales, the stable pricing the CFO is talking about.
The Mach-E has always been too expensive for what you get. The Lyriq and Mach-E were in the same ballpark in price. Also, the Mach-E competes more directly with the Tesla Model Y which is cheaper. The Lightning was also too expensive and doesn’t match the Hummer, Silverado or Sierra EVs in performance or range.
200,000 – 300,000?! Really?
Their goals and lipsmack has been the same BS for years. Quality? The only EV’s they have (which is way way fewer than promised) have been marred with quality issues and recalls.
Get real.
How about stop making them look like station wagons?
Really hope that can hit the top end of that estimate, might start shutting up the naysayers.
LMAO! Which EVs? The 48 EVs at my local Cadillac dealer that are sitting there collecting dust? People aren’t buying them just to have them kept at the dealer lots. They can spin this nonsense any ways they want.
How many ICE cars do they have on the lot?
Pretty common for a dealership lot to be full of, you know, cars. The things they sell.
Shocking!
You’re not going to sell didly squat if those prices don’t come down to earth levels. PERIOD! These aren’t your Silverados where people actually desire them. If you over at GM haven’t figured out yet that those prices need to be comparable to ICE equivalent prices for less convenience then don’t worry. The Chinese already looking to manufacture in Mexico will have figured it out and not only will you lose the Chinese market to them but the American market too.
Just looked at your Caddy dealer and they have 168 total vehicles on the lot. 95 new vehicles.
Oh Gods! Those ICE cars are just sitting rotting on the lot!!!
Get a grip.
Another GM Kool Aid addict!
This CFO must have lived his entire life in locations with no winter.
Quality?! Look at all the issues rolling out lately with ICE vehicles — and you’ve been doing THAT for over 100 years, GM!
Figure your $#!% out.
This has got to be a joke , right?
“I think people are focused on comparing GM’s EVs to Tesla. And I don’t think that’s the right comparison,” Jacobson said. The General Motors CFO said a better comparison would be to compare Tesla in its early years to GM’s current position”
What a disaster of a lame speach. The company that has a decades long EV head start on Tesla says its not the right to compare them to the number 1 producer? Yes, just completely unfair to compare GM vehicles to US designed and built Teslas, many assembled in a former GM plant.
“We have to be careful not to blindly play the volume game”. Blazer EV, Equinox EV, Silverado EV…who knew those were the boutique low-volume model names?
You can’t make up this nonsense.
Did Paul say when GM is going to make high quality EVs? 2035? Thanks for stating the obvious.
Well I really glad that some folks are willing to save me some Fuel for my 6 Ice cars. The whole electrical car thing at this point is an absolute joke, kinda like GMs leader……need I say more?
One of GM’s greatest problems has been they think their products are worth more than they actually are.
If ya first started making them in volumes that would help!
GM and Quality are two words that should not be used in the same sentence. Look no further than the Chevy Blazer EV. GM insists on stepping over the dollars to get to the dimes. Honda and Toyota pay more for quality components and it shows!