General Motors (GM) announced that it will not meet its target of producing one million electric vehicles (EVs) in North America by the end of 2025.
Mary Barra, CEO General Motors cited a slower-than-expected development of the EV market as the reason for the delay. He acknowledged that the EV market is developing more slowly than anticipated. Factors like higher prices, limited charging infrastructure, and slower consumer adoption have contributed to this slower growth.
This news comes as a surprise to many, as GM had previously been very vocal about its commitment to electric vehicles. In 2021, the company announced that it would be all-electric by 2035.
However, despite this setback, GM remains optimistic about the future of electric vehicles. The company is still investing heavily in EV development and production, and it believes that the market will eventually catch up to its ambitious goals.
There are a few key reasons why General Motors is backing away from its EV target 2025:
- Slower-than-expected market development: The EV market has not grown as quickly as GM had anticipated. This is due to a number of factors, including high prices, limited charging infrastructure, and consumer hesitancy.
- Supply chain challenges: The global chip shortage and other supply chain disruptions have made it difficult for GM to ramp up EV production.
- Software issues: GM has experienced some software issues with its EVs, which have led to delays and recalls.
Overall, GM’s statements reflect a realistic assessment of the current EV market conditions and a strategic shift towards prioritizing profitability and sustainable growth in the electric vehicle segment. While the 1 million EV sales target might be delayed, the company remains committed to its electrification goals and is actively working towards achieving them in the coming years.