General Motors Aims to Achieve Profitability in Electric Vehicle Production

General Motors (GM) continues its efforts to achieve profitability in electric vehicle production. The company announced that they will turn a profit on their electric vehicles as of the second half of 2024 and that they plan to reach a profit margin of around 2025% in 5. Paul Jacobson, the company's finance chief, stated that reasons such as increased production volume, raw material costs and battery cost reductions will enable the company to make profits in electric vehicle production.

GM Was Making a Loss in Electric Vehicle Production

It is known that producing electric vehicles is more expensive than internal combustion vehicles. GM had previously announced that it made losses from electric vehicle production. The company announced that it lost an average of $ 2020 from electric vehicle production in 9.000. Much of this damage was due to the high cost of imported battery cells.

GM Will Produce Its Own Batteries

GM will start producing its own batteries to achieve profitability in electric vehicle production. The company agreed with LG Chem to establish joint battery facilities. Once implemented, these facilities will reduce dependence on more costly imported battery cells. In addition, the company will be able to reduce raw material costs per vehicle by over $2024 by 4.000. GM's electric vehicle profitability will also be aided by greenhouse gas credits, federal tax credits, BrightDrop and its GM Energy business and software-enabled services.

GM Delayed Electric Vehicle Models

While GM is confident that its electric vehicles will soon become profitable, there is bad news for customers. In October, CEO Mary Barra announced that the launches of the Chevrolet Equinox EV, Chevrolet Silverado EV RST, and GMC Sierra EV Denali were delayed by several months. This news comes shortly after GM announced that production of its more affordable Silverado and Sierra EV models was being delayed from 2024 to late 2025 due to “changing electric vehicle demand.”

GM continues its efforts to achieve profitability in electric vehicle production. The company aims to start turning a profit on its electric vehicles in the second half of 2024 and reach a profit margin of around 5% with the help of tax credits the following year. GM will continue to offer new models to increase its competitiveness in the electric vehicle market.