General Motors’ objective to produce 1 million electric vehicles in North America by the end of next year is now in question following remarks 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. “We’re going to be guided by the customer.”
For years, the Detroit automaker aimed to increase its North American production capacity to build 1 million EVs by 2025. However, it has recently adjusted short-term guidance and investments. Barra has previously mentioned that GM will “build to demand,” with the company’s goals dependent on consumers embracing and purchasing more EVs.
A spokesperson for GM informed Reuters that the company would no longer reiterate its EV production capacity plans for 2025, stating, “We’re being flexible,” and adding, “we will build to demand.”
This production pullback comes despite a recent increase in EV sales. In the second quarter, GM’s EV sales rose 34% from the last quarter and 40% year-over-year, with 21,930 cars sold. This success is partly attributed to its fruitful partnership with Costco’s Auto Program. In March, Barra told Yahoo!Finance that GM will eventually sell more EVs in the U.S. than any other company, including Elon Musk’s Tesla.
Barra encourages people to “get an electric vehicle and drive it,” describing them as “a lot of fun.” The automaker is reportedly working on a clutch pedal for its EVs to allow drivers to make real-time adjustments for a smoother ride.
GM recently overcame various issues, including EV battery production challenges associated with the switch to its Ultium platform. The company has also received a $500 million federal grant to convert its assembly plant in Lansing, Michigan, for EV production.
GM is set to report its second-quarter earnings on July 23.
— Ben Kesslen contributed to this report.