General Motors’ ambitious target of producing 1 million electric vehicles in North America by the end of next year is now uncertain following comments from CEO Mary Barra on Monday.
“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 stated 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 build 1 million EVs by 2025, despite rolling back short-term guidance and some investments. Barra has previously said that GM’s objectives depend on consumer demand and acceptance of EVs.
A GM spokesperson told Reuters that the company would no longer uphold its EV production capacity plans for 2025. “We’re being flexible,” they said, adding, “we will build to demand.”
This production adjustment comes even as EV sales have surged recently. In the second quarter, GM’s EV sales increased 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. In March, Barra told Yahoo!Finance that GM expects to sell more EVs in the U.S. than any other company, surpassing Elon Musk’s Tesla in the future.
Barra encourages 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 to enable real-time driving adjustments and ensure a smooth ride.
GM recently overcame a series of challenges, such as EV battery production issues related to its transition to the Ultium platform. Additionally, the automaker received a $500 million federal grant to convert its assembly plant in Lansing, Michigan, for EV production.
GM will report its second-quarter earnings on July 23.