General Motors’ ambition to produce 1 million electric vehicles in North America by the end of next year is facing uncertainty due to recent remarks from CEO Mary Barra.
“We’re seeing a bit of a slowdown right now. We won’t get to a million just because the market is not developing, but it will get there,” Barra said Monday at a CNBC event. “We’re going to be guided by the customer.”
For years, the Detroit automaker has aimed to boost its North American production capacity to 1 million EVs by 2025. However, these plans have been adjusted as the company reconsiders short-term guidance and investments. Barra previously stated that GM will “build to demand” and that their objectives depend on consumer acceptance and purchase of EVs.
A GM spokesperson informed Reuters that the company would no longer reaffirm its EV production capacity targets for 2025. “We’re being flexible,” they said, also noting that “we will build to demand.”
This adjustment comes despite increasing EV sales in recent months. In the second quarter, GM’s EV sales rose by 34% from the previous quarter and 40% year-over-year, with 21,930 vehicles sold. This success is partly attributed to its effective partnership with Costco’s Auto Program. Barra told Yahoo! Finance in March that GM aims to eventually surpass Elon Musk’s Tesla in U.S. EV sales.
Barra encouraged people to “get an electric vehicle and drive it,” describing them as “a lot of fun.” The automaker is reportedly developing a clutch pedal for its EVs, allowing drivers to make real-time adjustments for a smoother ride.
Recently, GM has overcome several challenges, including issues with EV battery production related to its Ultium platform switch. The company has also received a $500 million federal grant to convert its Lansing, Michigan, assembly plant to produce EVs.
GM will report its second-quarter earnings on July 23.