{"id":2078166,"date":"2023-10-24T17:47:02","date_gmt":"2023-10-24T21:47:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/general-motors-scales-back-electric-vehicle-target-citing-profitability-concerns\/"},"modified":"2023-10-24T17:51:21","modified_gmt":"2023-10-24T21:51:21","slug":"general-motors-scales-back-electric-vehicle-target-citing-profitability-concerns","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/general-motors-scales-back-electric-vehicle-target-citing-profitability-concerns\/","title":{"rendered":"GM reduces electric vehicle goal due to profitability concerns."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgeneral-motors-scales-back-electric-vehicle-target-citing-profitability-concerns%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2078166&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>General Motors Scales Back \u2064Electric Vehicle Buildout \u200bTarget<\/h2>\n<p>General Motors (GM) is making adjustments to \u200cits electric vehicle (EV) production plans, signaling a growing concern among automakers about the sluggish growth of EVs. In a letter to shareholders, GM CEO Mary\u2062 Barra\u200c announced a change in course from their previous goal \u2064of\u200c building 400,000 EVs by mid-2024.<\/p>\n<blockquote>\n<p>\u201cWe are also moderating the acceleration of EV production in North America to\u200b protect\u2062 our pricing, adjust to slower near-term growth in demand, and implement \u2064engineering efficiency and other improvements that will\u200d make our vehicles less expensive to \u2063produce, and more profitable,\u201d the letter reads.<\/p>\n<\/blockquote>\n<p>Despite\u200b the challenges, GM reported a\u200d healthy third-quarter profit of \u200c$3.1 billion in net income, even with the impact of the United Auto Workers union \u2063strike. \u2062The strike,\u200b which began in September, is currently costing\u200b GM $200 million in profit\u2063 each week.<\/p>\n<p>Barra emphasized the importance of the \u2063current offer GM has made to union workers, describing it as a \u201chistoric contract\u201d that would\u2064 provide \u200bworkers with a salary of $40.39 \u2062per hour, equivalent to approximately $84,000 per year by the end of the agreement.<\/p>\n<blockquote>\n<p>\u201cIt\u2019s an offer that rewards our\u200b team members but \u2063does not put our company and their jobs at risk,\u201d Barra stated. \u201cAccepting unsustainably high costs would\u2064 put our future and GM team member jobs at risk,\u2064 and jeopardizing our future is \u2062something I will\u200c not do.\u201d<\/p>\n<\/blockquote>\n<p>GM&#8217;s\u200c decision to scale back on EVs is\u2062 surprising, considering their previous investment in the\u200c technology \u200cand their ambitious plan to phase\u200c out\u2064 petroleum-powered cars by 2035. However, the company has faced obstacles \u2064in reaching this \u200dgoal, recently announcing \u2062a delay\u2064 in electric pickup truck production to\u200b better manage capital investments.<\/p>\n<p>It&#8217;s worth noting that\u200d other automakers \u2064have also encountered\u2064 challenges with their EV rollouts.\u200c Ford, for example, pushed \u2063back its EV target by one\u2063 year due to lower-than-expected adoption. Additionally, the growth of EV\u200c sales has been hindered by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/janet-yellen-as-congress-for-billions-to-help-other-countries-debt-relief-climate-change-initiatives\/\" title=\"Janet Yellen As Congress For Billions To Help Other Countries\u2019 \u2018Debt Relief,\u2019 \u2018Climate Change\u2019 Initiatives\">higher interest rates<\/a>, making these already expensive cars even more costly for buyers.<\/p>\n<p>Overall, GM&#8217;s decision reflects the need\u2064 for automakers to adapt to market conditions and find ways to make \u200dEV production more efficient and profitable.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\">Click here<\/a> to read more from The Washington Examiner.<\/p>\n<p> <\/p>\n<h2> What factors contribute to the higher price tag of electric vehicles \u200ccompared to \u2064conventional \u2063vehicles<\/h2>\n<p><span>  Set realistic targets,&#8221; Barra wrote.<\/p>\n<\/blockquote>\n<p>This \u2064shift in strategy comes\u200b as a surprise\u2062 to many, as GM has been at the forefront of \u200bthe \u2062electric vehicle movement. The company previously pledged to invest $27 billion in electric and autonomous vehicles by 2025 and announced plans to introduce\u200c 30 new electric \u200bvehicles\u200c globally by 2025.<\/p>\n<p>However,\u200c the \u200brecent change\u2063 in direction reflects the challenges that automakers\u200b face in promoting widespread adoption of electric vehicles. Despite government incentives and increasing\u2062 consumer interest in \u200dsustainability, EVs still account for a small fraction of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/this-economic-week-ahead\/\" title=\"This Economic Week Ahead\">total vehicle sales<\/a>.<\/p>\n<p>One of the key reasons behind the slower growth of EVs is the lack of sufficient charging infrastructure. Many potential buyers are hesitant to switch to EVs due to concerns about limited charging stations \u2063and \u200blong charging times. This \u200dissue is particularly\u200b pronounced in rural areas where access to charging facilities is limited.<\/p>\n<p>In addition,\u2062 the higher price tag of electric\u2064 vehicles compared to conventional vehicles remains\u2063 a barrier to mass-market \u200dadoption. While prices have been decreasing over time, EVs are still\u200c often more expensive upfront. The cost\u200c of \u200cbattery technology, which\u200c is\u2062 a significant component of electric\u200c vehicles, continues\u200b to be a \u200dmajor contributing factor\u2062 to this price difference.<\/p>\n<p>Furthermore, range \u200danxiety \u2013 fear\u2064 of running \u2062out of battery power before reaching the destination \u2013 remains a concern among consumers. \u2063Although electric vehicle\u200b range has improved significantly in recent\u200c years, many potential buyers still perceive\u200c it as a potential inconvenience, especially for long journeys.<\/p>\n<p>Despite these challenges, \u2062it is important to note\u2064 that the overall trend for electric vehicles remains positive. Automakers recognize the need to transition to a more sustainable future, and governments are increasingly implementing policies to incentivize EV adoption. The \u200bBiden \u2063administration,\u2063 for example, aims to have electric vehicles represent half \u200dof all new \u200bcar sales in the United States by 2030.<\/p>\n<p>In response to the current market conditions, General Motors is adjusting its strategy to ensure realistic and\u2063 achievable \u200btargets. Scaling back \u2063their <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/general-motors-scales-back-electric-vehicle-target-citing-profitability-concerns\/\" title=\"GM reduces electric vehicle goal due to profitability concerns.\">electric vehicle buildout target<\/a> \u200bwill allow the company to better align its production with \u2062market demand and optimize pricing for profitability.<\/p>\n<p>GM&#8217;s\u200b move highlights the importance of balance in the \u200celectric\u2063 vehicle \u200bindustry. While there is undoubtedly significant\u2063 potential for growth, it is crucial for automakers to navigate market realities and address consumer concerns. This requires not only focusing on product development and technological advancements but also investing in charging infrastructure and educating consumers\u200d about the \u2062benefits of electric vehicles.<\/p>\n<p>As \u200cthe industry continues to evolve, it is likely that the growth of electric vehicles\u200d will accelerate. However, the pace of adoption \u200dwill depend on various factors, including \u2062the availability of charging infrastructure, advancements in battery\u200b technology,\u200d and \u2062consumer acceptance. General\u200c Motors&#8217; decision\u2064 to scale back \u2062its\u200c electric vehicle buildout target is a strategic\u2063 move that reflects the current state of the\u200c market, but it\u200b by \u2064no means indicates a\u200c lack of commitment to electric mobility. Instead, it underscores the need\u200b for a well-thought-out and realistic approach to\u200d drive the mass adoption of electric vehicles.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>General Motors is revising its electric vehicle production goal, reflecting the industry&#8217;s apprehension over sluggish EV growth. CEO Mary Barra announced in a Q3 shareholder letter that the company would alter its plans to manufacture 400,000 electric vehicles, signaling a shift in strategy.<\/p>\n","protected":false},"author":1,"featured_media":2078168,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2078166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2078166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2078166"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2078166\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2078168"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2078166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2078166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2078166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}