General Motors leader and CEO Mary Barra talked about the automaker’s upcoming electric vehicle plans, saying the company is well-positioned to weather an economic storm in an interview. GM is launching several EV models and supporting energy products that Barra believes will see high demand, no matter the state of the economy.
With interest rates climbing at a historic rate, many are wondering how it will impact the high-flying auto market.
In an interview with Yahoo, Mary Barra spoke about GM’s potential as consumer preference trended toward electric cars, adding EVs are a “significant growth” opportunity. In addition, she says that EVs are more than “how you get to point A to point B,” as they can be used as powerful energy sources.
GM is leveraging its battery technology, spinning it into a newly established business called GM Energy to offer clean energy and storage solutions for residential and commercial customers.
Ultium Home, the company’s residential energy management business, allows consumers to utilize vehicle-to-home (V2H) technology with their EVs, creating an energy management system and microgrid. GM says it’s designing electric vehicles that can keep the lights on for up to 21 days.
When asked how big of a business GM Energy can be, Barra says that accelerating EV adoption and a new interest in sustainable energy can create a growth opportunity for its energy business.
Like Ford and Tesla, GM is focusing on services it can offer outside of building electric vehicles to diversify its income streams in case the economy weakens and vehicle demand slows.
The past several years have favored the auto industry as high demand and limited supply have led to favorable margins and growth. With several new EV launches in key market segments, Barra says the company is making sure it will be able to fund the company regardless of the economy.
2024 Chevrolet Equinox EV 3RS Source: Chevy
How GM’s upcoming EV launches can soften an economic downfall
Meanwhile, in September, GM explained its strategy to provide an EV everywhere, launching a model in every significant auto segment. The GM models coming to market include:
Barra points out the Equinox EV is launching in the highest volume segment and is already having a positive response. A big reason for the interest is the price point of around $30,000, which Barra refers to as the “sweet spot” in the market.
Referring to the economy, Barra states:
I think we’re listening to what everyone else is saying around the globe, and so we’re preparing next year for a year that will look more like we have a little– it will actually be more demand but a little less demand than what we would think because we’re going to be conservative, make sure we set our cost structure up that way. So then if things turn out better, we’re well positioned.
Most importantly, she adds, with so many EV launches coming, GM is prioritizing future funding to ensure the company’s success, regardless of the state of the economy.
GM aims to sell one million EVs with over $35 billion in investments by 2025. According to Barra, the automaker has the supply agreements locked up to achieve that target as its second battery plant began operation in Ohio last month.
Electrek’s Take
While larger, more expensive electric models are in high demand right now, if the economy turns and consumers cut back on spending, smaller, less expensive EVs will likely steal the shine.
For example, in a similar economic scenario (high inflation, Federal Reserve tightens monetary policy) in the early 1980s, auto sales plummeted 20% YOY in 1980 as consumers cut back on spending. The fallout triggered a transition to smaller, more fuel-efficient vehicles. It also happened during the great financial crisis of 2008 to 2009.
US auto sales (Source: Federal Reserve Economic Data)
This is the segment GM is targeting with its cost-effective, EV-for-everyone approach. If they can successfully launch and scale EV production, GM will be in a good position to weather the economy.
At the same time, with several highly-anticipated EV launches coming, Barra is right to focus on generating alternative sources of revenue. When an economic downturn happens, GM should know by now that cash is king and that will allow them to continue funding operations while getting ready for the next chapter in the auto industry.
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The California Senate dropped a controversial provision of an upcoming solar law which would have broken long-standing solar contracts with California homeowners after significant public backlash over the state’s plans to do so.
For several months now, AB 942 has been working its way through the California legislature, with big changes to the way that California treats contracts for residential solar.
The state has long allowed for “net metering,” the concept that if you sell your excess solar power to the grid, it gives you a credit that you can use to draw from the grid when your solar isn’t producing.
Some 2 million homeowners in California signed contracts with 20-year terms when they purchased their solar systems, figuring that the solar panels would pay off their significant investment over the coming decades by allowing them to sell power to the grid that they generated from their rooftops.
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But this has long been a sticking point for the state’s regulated private utilities. They are in the business of selling power, so they tend to have little interest in buying it from the people they’re supposed to be selling it to.
As a result, utilities have consistently tried to get language watering down net metering contracts inserted into bills considered by the CA legislature, and the most recent one was a bit of a doozy.
The most controversial point of AB 942 was that it would break rooftop solar contracts early. At first, it was going to break all existing contracts, then was limited to only break contracts if a homeowner sells their home. The ability to transfer these contracts was key to the buying decision for many homeowners who installed solar, as the ability to generate your own power and lower your electricity bills adds to a home’s value.
This brought anger from several rooftop solar owners and organizations associated with the industry. 100 organizations signed onto an effort to stop blaming consumers who are doing their best to reduce emissions and instead focus on the real causes of higher electricity, which the groups said are associated with high utility spending and profits.
It also resulted in several protests outside CA assemblymembers’ offices, opposing the bill. And California representatives received a high volume of comments opposing the plan to break solar contracts.
But, as of Tuesday, the language which would break rooftop solar contracts has been removed by the CA Senate’s Energy Committee, chaired by Senator Josh Becker, who led the effort. Language which blamed consumers for utility rate-hikes was also removed from the bill, according to the Solar Rights Alliance.
The bill is still not law, it has only moved out of the Energy Committee. But bills that advance through committee in California do not usually meet a significant amount of debate when they come to a floor vote, due to the Democratic supermajority in the state. It seems likely that if this bill advances to a vote, it will pass.
Electrek’s Take
The bill is still not perfect for solar homeowners. It disallows anyone with a yearly electricity bill of under $300 from getting the “California Climate Credit,” which is a refund to state utility customers paid for by California’s carbon fee on polluting industry.
The justification is thin for removing this credit from homeowners who are doing even more for the climate by installing solar… but it turns out that limitation probably won’t affect many customers, because most solar customers will still pay a yearly grid connection tax of around $300/year, and most solar customers still have a small electricity bill anyway at the end of the year.
Now, the question of a grid connection fee is another point of possible contention. This has been referred to as a “tax on the sun” in some jurisdictions, and it does feel like an attempt to nickel-and-dime customers who are contributing to climate reductions and should not be penalized for doing so. However, there is at least some rationality in the concept that they should pay to use infrastructure (but then… isn’t that the point of taxes, to build infrastructure for people to use?).
In short, even if it’s not perfect for every solar homeowner, we can consider this a win, and an example of how, at least with functional governments (unlike the US’ one), the public can and should be able to stop bad laws, or bad portions of laws, with enough public effort.
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The XC60, Volvo’s best-selling vehicle, will soon be built in South Carolina. It will be assembled alongside the flagship EX90 electric SUV, with Volvo promising this is “just the beginning.”
Volvo brings its best-selling vehicle to South Carolina
Volvo revealed plans to begin production of its best-selling vehicle, the XC60, at its Ridgeville, South Carolina, plant.
Located just outside of Charleston, the facility is Volvo’s first US plant. After investing around 1.3 billion into it over the past decade, the “state-of-the-art, future-ready” facility assembles Volvo’s three-row electric SUV, the EX90, and the Polestar 3.
Volvo said that by adding the XC60, both as a mild hybrid and plug-in hybrid (PHEV), it would “soon now produce something for everyone in its US plant.”
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The XC60 has been the best-selling Volvo vehicle globally for several years now. It’s also already the brand’s most popular in the US, representing over 33% of Volvo’s sales. Volvo said that a quarter of buyers opted for the PHEV variant. The XC60 is the fourth-best-selling luxury PHEV in the US.
Volvo XC60 (Source: Volvo)
“The XC60 is already beloved around the world and in the US, and we’re proud we’ll soon be able to offer American families the XC60 they love, assembled here by American autoworkers,” Luis Rezende, President of Volvo Cars Americas, said.
In June, the XC60 was again Volvo’s top seller with over 20,700 units sold, up 8% from June 2024. In the first half of the year, XC60 sales in the US rose by nearly 23%.
Volvo XC60 (Source: Volvo)
After announcing that Q2 sales rose 4.4% in the US, Rezende said, “This quarter is just the beginning.” He added, “We are confident in the path ahead and remain fully committed to accelerating our electrification journey.”
The EX60 recently surpassed the 240 wagon to become Volvo’s best-selling vehicle of all time. Over 2.7 million XC60s are on the road today.
In late 2026, XC60 production is set to begin in the US, marking another milestone. Volvo mentioned it will continue building the EX90 at the facility “for customers who want more space or are looking to go fully electric.”
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With the federal EV incentive set to expire at the end of September, Ford is urging its dealers to prepare for a rush of buyers.
Ford warns dealers of upcoming EV rush
Like most automakers, Ford is preparing for a shakeup under the Trump Administration. After the “One Big Beautiful Bill” was signed into law on July 4, the $7,500 and $4,000 tax credit for new and used EVs will no longer be available after September 30.
In a memo sent to dealers this week, Ford warned, “demand is expected to increase as the deadline approaches for eligible vehicles.”
The letter (via CarsDirect) confirmed that the EV tax credit “will no longer be available for vehicles acquired after September 30, 2025.”
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Ford blamed Trump’s new bill for the expected rush of EV buyers ahead of the incentive deadline. Although the Mustang Mach-E doesn’t qualify for the credit, since it’s built in Mexico, Ford is passing it on through a leasing loophole. While it’s still available, the F-150 Lightning does qualify for the credit when purchased or leased.
2025 Ford Mustang Mach-E (Source: Ford)
Last week, Ford launched its new “Zero, Zero, Zero” summer sales promo, offering a $0 down payment, 0% interest for 48 months, and zero payments for the first 90 days on most Ford and Lincoln vehicles.
The new campaign replaces the employee pricing for all campaign, which ran through the first half of the year. Despite outpacing the industry with overall sales rising 14% in Q2, Ford’s EV sales fell by nearly a third.
Ford Mustang Mach-E (left) and F-150 Lightning (right) (Source: Ford)
Ford spokesperson Martin Gunsberg told Electrek that electric vehicle sales were lower due to the Mustang Mach-E recall and the transition to the 2025 model year. “Our dealers can’t sell what they don’t have,” Gunsberg said.
Although the Mach-E doesn’t qualify for the credit when purchased, it’s still one of the best EV lease deals available right now, starting at $395 per month. The offer is for 36 months with no down payment required.
2025 Ford F-150 Lightning (Source: Ford)
Ford isn’t the only one preparing for big changes over the next few months. Honda extended its ultra-low lease offer on the Prologue until the end of September. Hyundai and Kia are slashing prices with generous discounts ahead of the deadline. The 2025 Hyundai IONIQ 5 might be the best EV deal at just $179 per month right now.
Looking to snag the savings while they are still available? You can use our links below to find deals on top-selling electric vehicles in your area.
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