General Motors’ target of producing 1 million electric vehicles in North America by the end of next year faces uncertainty following remarks from CEO Mary Barra on Monday.
During a CNBC event, Barra commented, “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. 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, even as it adjusted short-term goals and investments. Barra indicated that GM would “build to demand,” emphasizing that the company’s objectives depend on consumer adoption of EVs.
A GM spokesperson informed Reuters that the company would no longer reaffirm its EV production capacity goals for 2025, stating, “We’re being flexible,” and added, “we will build to demand.”
Despite a recent increase in EV sales, with second-quarter sales up 34% from the previous quarter and 40% year-over-year, totaling 21,930 vehicles sold, production adjustments are being made. This sales boost is partly attributed to its collaboration with Costco’s Auto Program. Barra previously mentioned that GM plans 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 also reportedly developing a clutch pedal for its EVs, enhancing driving experience by allowing real-time adjustments for a smoother ride.
GM has recently tackled several challenges, including EV battery production issues related to its switch to the Ultium platform. The company received a $500 million federal grant to convert its Lansing, Michigan assembly plant for EV production.
GM will report its second-quarter earnings on July 23.