General Motors is lowering its electric vehicle goals over slower-than-expected sales in the market.
CEO Mary Barra shared a letter with shareholders on Tuesday to announce plans to lower its previous 400,000 electric vehicle goal by next year.
General Motors scales back electric vehicle target, citing profitability concerns https://t.co/fJWcMC3Fjm
— Washington Examiner (@dcexaminer) October 25, 2023
“We are also moderating the acceleration of EV production in North America to protect our pricing, adjust to slower near-term growth in demand, and implement engineering efficiency and other improvements that will make our vehicles less expensive to produce, and more profitable,” the letter read, according to the Washington Examiner.
"The letter also reported a healthy third-quarter profit of $3.1 billion in net income, even as the strike from the United Auto Workers union hit profits," it added.
— Jo Trader (@JoTrader4) October 24, 2023
"The bad news for GM's electrification efforts doesn't end here. The automaker said it is also slowing the launch of several EV models to cut costs and is cutting back on EV product spending," Inside EVs reported.
"Delayed models include the Chevrolet Equinox EV, Chevrolet Silverado EV RST, and GMC Sierra EV. Barra said these EVs would be delayed each by 'only a few months,' without providing specifics," it continued.
GM tops Q3 expectations but pulls full-year guidance due to mounting UAW strike costs https://t.co/bWvs7ZRQB5
— CNBC (@CNBC) October 24, 2023
"The UAW dealt another blow to GM just hours after its quarterly reporting, expanding its strikes to a highly profitable GM plant," CNBC reported.
"Due to the ongoing volatility caused by the strikes, GM said Tuesday it is pulling its previously announced earnings guidance for the year that called for $12 billion to $14 billion in adjusted earnings and net income attributable to stockholders of between $9.3 billion and $10.7 billion," it added.
The reductions and delays by General Motors are also a blow to the Biden administration's focus on electric vehicles that the president made when entering the White House.
The change could be upsetting to some of Biden's backers in the area of climate change who will view the move as another setback.
The change could also be to the political advantage of Republicans in Michigan and nationally as automakers shift to deal with inflation and strikes that have been an ongoing issue under Biden's leadership.