GM's 2024 Chevrolet Equinox EV during a media launch event for the vehicle in Detroit, May 16, 2024.
Michael Wayland / CNBC
DETROIT – General Motors is trimming its expected sales and production of all-electric vehicles this year, as U.S. adoption of EVs occurs slower than expected.
GM Chief Financial Officer Paul Jacobson said the company now expects production of its all-electric vehicles to range from 200,000 to 250,000 this year, down from a previously announced range of 200,000 to 300,000. The company has recently said it will produce volume to match demand, which is growing more slowly than had been forecast.
"So at the lower end of that, and I think it reflects the momentum that we have in the business," Jacobson said Tuesday during a Deutsche Bank investor event.
Jacobson said GM expects EVs to make up 8% of U.S. sales industrywide this year. That's lower than many other auto analyst forecasts, which expect EVs to represent around 10% of industry sales in 2024.
GM expects its EVs to be profitable on a production, or contribution-margin basis, once it reaches production of 200,000 units. That milestone is still expected in the fourth quarter of this year, he said.
Jacobson said the automaker, which does not report monthly sales, sold more than 9,500 EVs in North America in May. Sales of GM's all-electric vehicles remained minuscule during the first quarter. EV sales totaled 16,425 units, or 2.8% of the automaker's overall sales during the period.
GM, Ford and Stellantis shares in 2024.
The Detroit automaker is in the middle of launching its newest EVs, including its new entry-level Chevrolet Equinox EV. The vehicle will start at around $35,000 before EV incentives, such as a federal credit of up to $7,500. GM also recently relaunched its Chevrolet Blazer EV after halting sales due to software issues.
The two new EVs, which share GM's "Ultium" EV platform and technologies, are crucial for GM's EV growth.
In addition to making the EVs announcement, Jacobson said the company expects its second-quarter earnings to be better than the first three months of the year. He also said the automaker this month will invest $850 million into its troubled Cruise autonomous vehicle unit to help with operational cash.
The comments by Jacobson come after the company on Tuesday morning announced that a new $6 billion stock repurchase authorization has been approved by its board, largely backed by sales of its traditional gas-powered vehicles.
The new buyback authorization comes as anaccelerated $10 billionshare repurchase program announced in November 2023 is expected to be completed by the end of June.
"We are very focused on the profitability of our [internal combustion engine] business, we're growing and improving the profitability of our EV business and deploying our capital efficiently. This allows us to continue returning cash to shareholders," Jacobsonsaid in a release.
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Correction: GM is trimming its EV production target to 200,000 to 250,000 vehicles in 2024. A prior version of this article misstated that range.
FAQs
Jacobson said GM expects EVs to make up 8% of U.S. sales industrywide this year. That's lower than many other auto analyst forecasts, which expect EVs to represent around 10% of industry sales in 2024.
What is GM trims 2024 EV forecast? ›
General Motors scaled back its electric vehicle production forecast for 2024, saying it will build as many as 50,000 fewer EVs in North America than previously projected. The automaker now expects to build 200,000 to 250,000 EVs this year, GM CFO Paul Jacobson said June 11 at the Deutsche Bank Global Auto Conference.
Is GM slowing EV production? ›
DETROIT – General Motors said Tuesday it is again slowing its plans for all-electric vehicles by further delaying a second U.S. electric truck plant and the Buick brand's first EV.
What is the outlook for GM in 2024? ›
GM's 2024 financial guidance includes anticipated capital spending of $10.5 billion - $11.5 billion , inclusive of investments in the company's battery cell manufacturing joint ventures.
What is the GM electric vehicle forecast? ›
GM's 2024 Production Forecast
GM cut its 2024 EV production forecast and announced a new $6 billion share buyback plan, as the automaker must depend on demand from its gasoline-powered models. GM now projects the higher end of its 2024 EV production to be 250,000 units, down from a prior forecast of 300,000 units.
Does GM plan to produce 200000 and 300000 EVs in 2024? ›
GM CFO Paul Jacobson said Tuesday that GM would trim its targeted production of its new EVs in 2024 from between 200,000 and 300,000 to between 200,000 and 250,000. Jacobson said GM still believes it can be "variable profit positive" on its EVs at the "low 200,000" production range.
How many EVs did GM sell in 2024? ›
In the first half of 2024, GM set a new company record with 38,355 EV deliveries, including the 21,930 units in Q2. Retail EV registrations have surged by 17% year-to-date, outpacing the broader retail industry's growth of 10%.
Did GM reduce 2024 EV production target due to slower demand? ›
General Motors (GM) has revised its electric vehicle (EV) production target for 2024, lowering it from 200,000-300,000 units to 200,000-250,000 units due to slower-than-expected demand growth. Despite these adjustments, GM remains optimistic about achieving profitability in its EV segment by the end of the year.
Why did GM EV fail? ›
The key issue left out was the cost of producing the EV1 electric car. About 1100 EV1's were produced by General Motors (GM) and leased to selected drivers at a monthly cost of $250 to $500. The drivers thought that this was somewhere near what would be required to cover the cost of producing them. It wasn't.
Is GM losing money on electric cars? ›
GM doesn't specifically report the financial results of its EV line, but CFO Paul Jacobson said that the company continues to lose money on its electric cars.
Chevrolet Motorsports will continue to compete across the world; Chevrolet announces this is not the final chapter for nameplate. DETROIT – After nine strong model years in the market, with hundreds of thousands sold, the sixth generation Chevrolet Camaro will retire at the conclusion of model year 2024.
What is GM forecast? ›
GM Financial Forecast
Next quarter's earnings estimate for GM is $2.38 with a range of $1.83 to $2.80. The previous quarter's EPS was $3.06. GM beat its EPS estimate 100.00% of the time in the past 12 months, while its overall industry beat the EPS estimate 59.66% of the time in the same period.
Is GM firing employees? ›
Yes, General Motors (GM) has laid off more than 1,000 salaried employees.
Is GM cancelling EV? ›
Despite General Motors Co.'s plans for an all-electric vehicle segment in North America, the auto manufacturer announced it would reintroduce plug-in hybrid electric vehicles after challenges led to another decline in profits from its EV line.
What year is GM going all-electric? ›
Barra insisted that the reincarnation of the plug-in hybrid does not mean that the company is retreating from its plan, announced in 2021, to produce only electric vehicles by 2035. “Let me be clear, GM remains committed to eliminating tailpipe emissions from our light duty vehicles by 2035,” she said.
What is the target of GM EV production in 2025? ›
General Motors ' goal of being capable of producing 1 million all-electric vehicles in North America by the end of 2025 in heavily in doubt, following comments Monday by CEO Mary Barra.
Will Chevy make a 2024 bolt EV? ›
It's noteworthy that the Chevy Bolt will not see a 2024 model as it has been discontinued, making way for the Equinox EV to take its place, symbolizing the dawn of a new era in automotive excellence.
What is the range of the 2024 Chevy Silverado EV? ›
EPA-estimated 450-mile range on a full charge on 4WT. GM-estimated 440-mile range1 on a full charge on RST. Up to 754 horsepower with more than 785 lb-ft of torque in available max power Wide Open Watts Mode on First Edition RST, enabling a GM-estimated 0-60 mph time of less than 4.5 seconds.
Is GM losing money on EV? ›
In an SEC disclosure, GM cited strong sales of trucks and SUVs for generating increases in net sales and revenue. GM doesn't specifically report the financial results of its EV line, but CFO Paul Jacobson said that the company continues to lose money on its electric cars.
