General Motors is cutting its projected sales and manufacturing of electric vehicles (EVs) this year as the United States is seeing slower-than-expected adoption of these cars.
GM Lowers EV Production Forecast
In a report by CNBC, CFO Paul Jacobson said the company's earlier projection of 200,000 to 300,000 all-electric car production for the year has been revised downward to 200,000 to 250,000.
He said GM anticipates 8% of all sales in the US to be EVs this year. That is lower than the predictions of most automotive analysts, who are projecting that EV sales will account for around 10% of the industry total in 2024.
Nevertheless, Jacobson said that the firm anticipates greater profitability in the second quarter compared to the first quarter of the year.
Once manufacturing hits 200,000 units, GM anticipates that its EVs will turn a profit, either from production or the contribution margin. According to Jacobson, such benchmark is still anticipated in the the fourth quarter of this year.
Q1 Sales Were Low
GM reportedly sold over 9,500 EVs in North America in May. In the first three months of the year, sales of GM's all-electric cars were very low. During the time in question, the carmaker sold 16,425 units of EVs, representing 2.8% of their total sales.
The new Chevrolet Equinox EV, an entry-level electric car, is one of many EVs that the Detroit automaker is releasing at the moment. The base price of the car will be close to $35,000 before any EV incentives, including a $7,500 federal credit, are applied.
The Chevrolet Blazer EV was also recently brought back to market after sales were stopped because of software problems.
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