General Motors’ ambitious target of producing 1 million electric vehicles in North America by the end of next year is facing skepticism 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 said at a CNBC event on Monday. “We’re going to be guided by the customer.”
For years, the Detroit automaker has aimed to increase its North American production capacity to 1 million EVs by 2025. However, it has revised short-term guidance and some investments. Barra has previously emphasized that GM will “build to demand,” with the company’s goals heavily dependent on consumer acceptance and purchases of EVs.
A GM spokesperson told Reuters that the company would no longer reiterate its EV production capacity plans for 2025, emphasizing flexibility and stating, “We will build to demand.”
The production slowdown occurs despite a rise in EV sales in recent months. In the second quarter, GM’s EV sales increased by 34% from the previous quarter and 40% year-over-year, with 21,930 cars sold. This success is partially attributed to its collaboration with Costco’s Auto Program. In March, Barra told Yahoo! Finance that GM aims to surpass Elon Musk’s Tesla in U.S. EV sales 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, enabling drivers to make real-time adjustments and ensure a smooth ride.
GM recently resolved several issues, including challenges with EV battery production related to its transition to the Ultium platform. Additionally, the company received a $500 million federal grant to convert its assembly plant in Lansing, Michigan, for EV production.
GM is scheduled to report its second-quarter earnings on July 23.