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GM’s 2025 1-Million EV Production Capacity Target May Be Revised

The industry-wide transition to all-electric powertrains continues to see strategy shifts as automakers grapple with fluctuating consumer demand and a somewhat uncertain regulatory environment. That includes GM, which recently announced that it would reintroduce plug-in hybrid vehicles (PHEVs) to the North American market in anticipation of expansions to the EV charging infrastructure. Now, it sounds as though General Motors’ target to hit one million units of EV production capacity by 2025 may be in doubt, as well.

A GM all-electric vehicle, the Cadillac Lyriq, rolls off the production line.

According to a recent report from CNBC, the uncertainty stems from recent comments from GM CEO Mary Barra. During a recent virtual event, Barra stated: “We won’t get to a million just because the market is not developing, but it will get there.” She added, “We’re going to be guided by the customer.”

The one-million unit production capacity goal was one of the last EV targets that GM had left unchanged amid lower-than-expected consumer demand for all-electric vehicles. Previously, GM had maintained the goal of a one-million EV unit production capacity in both China and North America by 2025. Despite revising several other EV targets and product plans, General Motors had previously remained committed to this production capacity goal.

In a statement, a GM spokesman clarified that the one-million unit target was in regard to production capacity, not necessarily the physical production of one million EVs in 2025. The company has now decided to no longer reiterate the 2025 EV production capacity plans, instead highlighting a flexible approach to meet market demand. More details about General Motors’ revised EV plans are expected when the company reports its second-quarter results next week.

Meanwhile, other automakers are revising their EV production plans as well. Ford, for example, has pushed back production timelines for various EV models, while Audi recently announced that it would remain flexible in its EV targets to cater to changing market demands.

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Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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Comments

  1. Of course 🙄

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  2. This is what happens when you let the government dictate what companies should build.

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  3. “All In”

    In all seriousness, I give GM credit for backing off of electrification. It’s not easy when political and social pressure is demanding GM continues to its own detriment. I only wish they did it sooner.

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    1. simple economics’. not any real courage of standing up to the all might government.

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  4. “Deliveries” does not equal “capacity”. Just because they aren’t flooding dealer lots with cars people can’t afford doesn’t mean they are making some huge change or can’t make some previously stated target — they’re just building what people are buying. As soon as they start reducing profits and lower prices they’ll start selling more.

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  5. Car companies will have to go one of two directions, each the opposite of the other depending on which political party wins the Presidency and controls Congress in 2025. One will likely push for a continued transition to hybrids and electric vehicles and electric infrastructure (charging station) development while the other will likely eliminate all regulations on and EV requirements and infrastructure.

    Now imagine having to invest billions of dollars on the future products on your company not knowing which way the wind will blow because it’s a toss-up? That has got to be incredibly frustrating and difficult. You make the wrong move and you could invest all that money going the wrong direction. I think all the auto company execs are trying to find a middle ground so they can position themselves for flexibility whichever way the United States goes politically.

    There’s also the battery issue – they’re made of rare earth materials and of resources in limited supply. There is both an environmental and political component to this as well. How do they ensure battery production for the foreseeable future? How does the United States compete in the battery manufacturing global marketplace? You don’t want to have to rely on a foreign nation for all of your propulsion technology.

    So, we can set here an armchair quarterback, but there are a lot of very smart people sweating and losing sleep over this stuff. Moving a car company in any particular direction is not a fast process. It’s like steering an aircraft carrier at full speed.

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    1. Except you’re forgetting CA and (10?) other states have adopted stricter CAFE standards. So the Supreme Court would have to overrule a states ability to adopt their own standards (that would completely contradict the courts ruling that states get to adopt their own abortion rules). Manufacturers aren’t going to flip their path except maybe build more plug in hybrids where the engine only runs after the battery is depleted.

      Now republicans could work to kill the IRA. However, doing so risks destroying billions of investments in red states specifically tied to the IRA. You’re right, Trump might undo that. Very logical.

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      1. States having their own cafe standards really is a violation of interstate commerce clause and should be s federal rule. your abortion is absurd.

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      2. With a stroke of a pen, Trump can destroy the California waiver. The Chevron decision perhaps will give it teeth. You can’t compare abortion and commerce rules.

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    2. But it doesn’t help that Barra and Farley were kissing Biden’s and Newsome’s backside going “all in” on EVs instead of what the market wants.

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      1. More like standing their with a knife to their throats- EPA and CAFE standards that are nearly impossible to meet by 2030/2035

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    3. Just say the timing of the rework Fairfax(NOVEMBER2024) may be coincidental to the election?

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    4. One thing you missed after the battery issue. Is the power grid issue. AI will require the US grid to add 100% capacity in 5 years- we know that can not happen. But it will constrain the national charger network dramatically

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  6. EV sycophants crying everyday because the entire Country isn’t FORCED to join the Cult .

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  7. mary is basically lying when she states ‘guided by our customer’. i believe the majority of customers would enjoy a resurgence in big displacement V-8’s without the ‘jester of the court’ epa.

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    1. GM has never broke the 100,000 annuals sale mark for EVs. The now defunct Malibu (130,000) outsold all GM EVs combined last year. When it comes to EVs GM is a lost cause. Musk was right all along about Ford and GM EVs.

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    2. GM has never broke the 100,000 annuals sale mark for EVs. The now defunct Malibu (130,000) outsold all GM EVs combined last year. When it comes to EVs GM is a lost cause.

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  8. Stick with gas engines for the majority and build a few EV’s for the minority that want them.
    Mary drank the kool aide and did not listen to the real customer base.
    EV vehicles will have little value on the resale, are not good in the winter, the real truths are starting to come out from the govt media.

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  9. I want a GMC or Chevy 1500 PHEV (plug in hybrid) with at least 50 mile range. I own a Chevy Bolt EV (262mile range and 40,000 miles now with only two tire rotations for $26ea ! zero maintenance) I also have a BMW X5 PHEV (42 mile electric range) of which 90% of the miles are electric and 10% gas. Fully electrics work for some and hybrids work for everybody.

    waiting for the GM Pickup Hybrid without the ugly avalanche style slope to the bed.

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  10. A July 14th article here on GM authority reported EV sales increase for the second quarter. Below is from the article.

    “Notably, this jump in all-electric vehicle sales can be partially attributed to increased EV sales volume from General Motors, as the Detroit-based automaker accounted for more than 21,000 EVs throughout Q2 2024.”

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    1. 21k units a year= 84k a year. Not even half a standard assembly plant. Now GM has s3veral plants that are fully EV, and some that are partial EVs. GM better hope sales increase quickly or plan on converting these plants back to ICE production.

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  11. I can’t understand how some people can keep their jobs being so wrong ALL the time. I know most of us would not be allowed to keep our jobs under this scenario, and we probably all make hundreds of times less than GM upper management

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    1. The boards of these companies are there for the large shareholders, hedge funds like Blackrock. They control the execs, hire/fire them, determine what the execs get bonuses for, etc. These are the folks setting the agendas for companies and rewarding or punishing how the execs follow through with their agendas. It’s not all about profits anymore and hasn’t been for a while.

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      1. It is more about profits it is just the companies are controlled by Wall Street directly.

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    2. How is she wrong? They noticed the market changing and have made adjustments to their future plans. not like the last guy that approved the 2010 Malibu(2 billion loss) or the revised Cruise which closed Lordstown.

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  12. plug in Hybrid sign me up- even when running on the generator they get 40-60mpg

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