General Motors’ aspiration to produce 1 million electric vehicles in North America by the end of next year is now uncertain 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 Monday at a CNBC event. “We’re going to be guided by the customer.”
For years, the Detroit automaker has aimed to increase its North American production capacity to build 1 million EVs by 2025, even while adjusting short-term guidance and some investments. Barra has previously mentioned that GM will “build to demand” and that the company’s targets depend on consumer acceptance and purchase of more EVs.
A GM spokesperson told Reuters that the company would no longer restate its EV production capacity intentions for 2025. “We’re being flexible,” they said, adding that “we will build to demand.”
The production adjustment happens even as EV sales have risen 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 vehicles sold. This success is likely partly due to its partnership with Costco’s Auto Program. In March, Barra told Yahoo!Finance that GM will eventually surpass any other company, including Elon Musk’s Tesla, in U.S. EV sales.
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, allowing drivers to make real-time adjustments to ensure a smooth ride.
GM has recently overcome several issues, including EV battery production problems related to the transition to its Ultium platform. The company has also received a $500 million federal grant to convert its assembly plant in Lansing, Michigan, to produce EVs.
GM is scheduled to report its second-quarter earnings on July 23.