GM: $30,000 EVs Are Hard to Sell

Plans to Sell ICEs Continue

Adapting to electrification can be an arduous undertaking for shoppers, but auto makers are also running into difficulties in determining the fitting equilibrium between EVs and Internal Combustion Engines in their collection. General Motors is one such producer, asserting that EVs costing between $30,000 and $40,000 are not profitable right now.

The auto firm hailing from Michigan declared that bringing down the cost of its electric vehicle models wouldn’t be the wisest choice when aiming for profitability. The weightiest grounds singled-out were the expenditure of batteries, which become significantly more costly if/when car-makers set out to increase their range.

The departure of the Chevrolet Bolt EV from the lineup after 2023 is set in stone, yet the introduction of its successor, the Chevrolet Equinox EV, is now confirmed. Scheduled to be making its debut later on this year, Chevrolet’s latest electric offering is anticipated to expand their presence in the marketplace. Having a launch date cost around $27,000, the Equinox EV touts itself as one of America’s most affordable electric vehicles.

“The cost of batteries is still not low enough to make a mass-market vehicle, which would be a car costing between $30,000 and $40,000, a reality,” stated Mary Barra, CEO and Chair of General Motors, during the 39th Annual Bernstein Strategic Decisions Conference. Barra continued, noting that this price range is what comprises the majority of new car sales around the world, typically falling into the ‘C-segment crossover SUV’ category.

GM is persisting with its electric vehicle program by continuing to put up for sale its internal combustion engine (ICE)-powered trucks and SUVs. Large-sale models like the Chevrolet Silverado and GMC Sierra are assisting in guaranteeing a continuous influx of funds into the corporation. It is allotting billions to assure that its ICE models remain present.

GM is currently combating a problem with its selection of electric vehicles, signaled by the paltry amount of GMC Hummer EVs sold – only two were purchased in the initial four months of 2021.

GM is optimistic that the costs of batteries will decline by 2025, however, it may still be a while before the prices of electric and internal combustion engine vehicles are equal.

“We understand that we can do better,” stated Mary Barra, CEO of General Motors. “We’re already seeing some progress and we’re putting the necessary resources in place to reduce costs. I believe that this will be achieved in the latter part of the decade, or maybe even a bit later. However, we have teams in place who are taking all the knowledge we have from internal combustion engines to make it possible to reduce these costs.”