General Motors sees a bright future in electric vehicles as early as 2025.
The Detroit-based automaker said it expects its “rapidly growing portfolio” of EVs will be “solidly profitable in 2025 in North America as the company scales EV capacity in the region to more than 1 million units annually, ramps up its software revenue opportunities, generates significant greenhouse gas benefits and realizes the positive impacts of new clean energy tax credits,” it told investors gathered at a meeting in New York City.
GM’s focus on EVs and energy storage is aimed at competing with longtime EV market leader Tesla.
“GM’s ability to grow EV sales is the payoff for many years of investment in R&D, design, engineering, manufacturing, our supply chain and a new EV customer experience that is designed to be the best in the industry,” said GM Chairwoman and CEO Mary Barra in a press release.
“Our multi-brand, multi-segment, multi price point EV strategy gives us incredible leverage to grow revenue and market share, and we believe our Ultium Platform and vertical integration will allow us to continuously improve battery performance and costs.”
The carmaker said it plans to aggressively seek EV market leadership as it anticipates wider consumer adoption. In 2025, it said it will have multiple EV models in various segments that “represent about 70% of EV industry volume.” Those models include the EV versions of the Chevrolet Silverado, Blazer, Equinox and the GMC Sierra pickup, plus the Cadillac LYRIQ.
As it ramps up EV design and production, GM is also building out supporting infrastructure, including a battery cell joint venture with plants operating in Ohio, Tennessee and Michigan by the close of 2024.
EV batteries and their components have been a sticking point in manufacturing due to supply-chain issues brought about by the pandemic, and the U.S. government has increased efforts to facilitate more production and element processing in North America to wean the U.S. market from Asian suppliers, including enacting a tax credit for EVs whose final assembly takes places in North America.
GM said revenue from EVs is projected to reach more than $50 billion in 2025, with total company revenue growing at a 12% compound annual rate to over $225 million that year.