General Motors’ ambitious target of producing 1 million electric vehicles in North America by the end of next year is now in question 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.”
The Detroit automaker has long aimed to expand its North American production capacity to manufacture 1 million EVs by 2025, despite reducing some short-term goals and investments. Barra has previously mentioned that GM will “build to demand” and emphasized that achieving their objectives depends on consumer acceptance and purchase of more EVs.
A GM spokesperson informed Reuters that the company would no longer reinforce its EV production capacity plans for 2025, stating, “We’re being flexible” and adding “we will build to demand.”
This production scaling back comes even though EV sales have been increasing in recent months. In the second quarter, GM’s EV sales rose by 34% from the previous quarter and by 40% year-over-year, with 21,930 units sold. This growth is likely partly attributed to a successful partnership with Costco’s Auto Program. In March, Barra told Yahoo! Finance that GM aims to surpass Tesla and become the top seller of EVs in the U.S. 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, which would enable drivers to make real-time adjustments and ensure a smooth ride.
Recently, GM has navigated a number of challenges, including some EV battery production issues related to the transition to its Ultium platform. Additionally, GM has received a $500 million federal grant to convert its assembly plant in Lansing, Michigan, to produce EVs.
GM is set to report its second-quarter earnings on July 23.