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General Motors (GM) EV push will soon pay off. GM investors are gearing up for an update from CEO Mary Barra this week that includes a mention of the automaker turning a profit on its electric vehicles in 2025.

As the race to claim EV market share heats up, many automakers are taking significant losses to scale production. For example, Rivian posted a negative gross profit of nearly $1 billion in the third quarter as the young EV maker builds its manufacturing capabilities.

Meanwhile, the company made a comment in its Q3 letter to shareholders that resonates across the industry with the electric vehicle transition underway, stating:

As we produce vehicles at low volumes on production lines designed for higher volumes, we have and will continue to experience negative gross profit related to labor, depreciation, and overhead costs.

Start-ups and legacy automakers look to mirror the success Tesla is having with pure EV models. Tesla’s automotive gross profit (percent of profit of each new vehicle sale) was 27.9% in Q3.

Meanwhile, although GM’s revenue reached a record $41.9 billion in Q3, its margins were much lower, and even more so with its electric vehicles.

GM posted automotive revenue of $38.7 billion, yet the cost to make and sell these vehicles reached $35.6 billion, for a gross profit of $3.1 billion or just over 8%.

As GM scales EV production, the company expects to continue taking a loss in that segment. However, by 2025, the automaker expects this to change – this is the same year Mary Barra is confident GM will catch Tesla, when the company is set to turn a profit on its electric vehicles.

GM-electric-vehicles-profit
electric Chevy Bolt EUV (Source: Chevrolet)

GM to earn a profit on electric vehicles in 2025

According to a report from Bloomberg, sources familiar with the matter claim GM is planning to update investors on November 17 (GM Investor Day) that the company expects its electric vehicles will turn a profit in 2025.

Mary Barra will discuss the automaker’s battery investments and how it plans to build the program. However, with GM’s plans to provide an “EV for everyone” on its way to becoming one of the largest electric vehicle makers, investors are eagerly awaiting how GM will do so profitably.

Well, according to sources who did not want to be named because the presentation is not yet public, 2025 will likely be the year GM will make electric vehicles for a profit.

After several years of building its production capabilities and supporting supply chains, GM is ready to start earning a profit on its EVs. GM, together with LG, have four battery plants coming online in the US, with at least three by 2024.

With several highly anticipated EV models coming from GM next year, including the $30,000 Chevy Equinox EV and electric Silverado pickup, the automaker expects to significantly ramp production volume.

At the same time, GM still expects its electric vehicles to generate lower margins than their ICE counterparts as supply chains and production ability transitions over. David Whiston, a Morningstar analyst, commented, stating:

GM won’t sell at the prices of Teslas, so maybe they won’t match the profits. But they should be able to show good margins. If Tesla can do it, there’s no reason GM, Ford and others can’t do it. They’re just behind on product lineup and manufacturing.

Mary Barra said on the company’s Q3 earnings call this week’s investor update will “go deeper into the second phase of our EV growth strategy.” Stay tuned for updates!

Electrek’s Take

I would expect GM to start generating a profit on its electric vehicles by 2025, with the company going all in on electric. However – and this is big – it will also be costly for GM to wind down sales and operations of its ICE vehicles.

New and used gas-powered vehicles will likely continue seeing their prices drop as electric vehicles gain market share. As electric vehicles and the supporting infrastructure becomes cheaper and more accessible, ICE values will likely fall.

Many automakers, like GM, have financial divisions that rely heavily on the residual value of their vehicles. If auto prices continue slipping, GM won’t be able to sell its cars near what it valued them, which could result in substantial losses.

What does everyone think? Will GM make EVs profitably in 2025? Let us know in the comments.

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Italian DC fast charger maker Alpitronic enters the US market [video]

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Italian DC fast charger maker Alpitronic enters the US market [video]

Electrek‘s Seth Weintraub went to Alpitronic America’s new HQ to speak with CEO Mike Doucleff about its plans to roll out its ultra-fast chargers across the US.

Bolzano, Italy-based Alpitronic was founded in 2009, and it specializes in the development and production of DC fast chargers. The global company’s best-known product line is the Hypercharger, an ultra-fast EV charging station that can deliver charging power from 50 kW to 400 kW, depending on the model.

Alpitronic Americas recently announced an agreement with Mercedes-Benz High-Power Charging to become the first DC fast-charging network to deploy Hypercharger 400 units at scale in the US.

Alpitronics Americas’ new headquarters’ 68,000-square-foot office and industrial space in Charlotte, North Carolina, includes a diagnostics laboratory and repair center, a spare parts warehouse, a training center, and space for as many as 300 employees.

The Bolzano, Italy-based company’s Hyperchargers achieve, on average, an efficiency rate greater than 97.5%, and that its repair and service network can service chargers anywhere in the US.

Alpitronic cofounder and CEO Philipp Senoner said, “As a natural part of Alpitronic’s growth, we are anxious to expand our industry-leading Hypercharger network from Europe, where we are market-share leader, to North America. We are pleased with the talent we are finding in North Carolina and look forward to setting a new standard for the EV charging network in the US.”

Alpitronic chargers support all EV brands. Pre-production units have been tested publicly in Rock Hill, SC, and Portland, OR. The first US-built, public chargers are expected to be installed and available in October.

Seth and Mike Doucleff discuss what Aliptronic’s main driver was to come to the US, what attracted them to Charlotte, and what the company thinks the future of DC fast chargers is in the US, among other things. Their conversation begins at 00:41 on the Electrek podcast below:


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Volvo CE rolls out some new hotness at Volvo Days 2024 [part 1]

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Volvo CE rolls out some new hotness at Volvo Days 2024 [part 1]

This week, Volvo Group held its once-every-three-years “Volvo Days” event in Shippensburg, PA for the first time since the pandemic, showing off tons (literally!) of new equipment, new trucks, and new concepts – including a couple of “world’s first” debuts.

What is Volvo Days? That might require a bit of background …

The heavy equipment world operates on something of a three-year cycle. ConExpo, the industry’s biggest trade show, happens every three years. That sets the tone, with companies showing off all their hottest concepts and forward-thinking new projects. That’s year 1. Year 2 is typically when shows like Volvo Days typically take place, with manufacturers rolling out the production versions of the concepts they showed at ConExpo and inviting a mix of dealers, end-users, and journalists in to try out some of what got showed at ConExpo. Year 3 is more insular, with the manufacturers bringing in salespeople to get them trained on new products and prepare them for how to talk about what the company is planning to show at next year’s ConExpo.

ConExpo was last year, so this year we get Volvo Days – for the first time since 2018, in fact, since the 2021 event was canceled due to COVID. That makes this the first Volvo Days in six years … and expectations were high.

The kickoff

Volvo Days, night 1; kickoff.

Volvo kicked off the week’s events with a drone display highlighting the company’s construction equipment history – appropriate, given that the event was held at Volvo CE’s Pennsylvania engineering and production campus. The drone show was followed by a genuinely impressive, highly choreographed equipment ballet that featured new electric equipment shown for the first time in North America, as well as the new-for-2025 Volvo VNL and Mack MD Electric trucks doing some heavy lifting and hauling.

The show lasted well over thirty minutes, and it was impossible for me to keep track of everything that was happening, but you can get a sense of it in the video (above).

Compact electric equipment

Volvo had its new, in-production L20/120 Electric wheel loader and ECR25 Electric excavator front and center in its reception center, along with information highlighting their competitive advantages in the compact equipment space.

The best thing about Volvo Days, however, isn’t that they have interesting vehicles on display – it’s the fact that nearly every one of those interesting vehicles is available to experience first hand … including the 30-ton EC230 Electric excavator.

Volvo Electric excavators with Steelwrist; photo by the author.

All the electric excavators (even the mini) were incredibly smooth and quiet, with noticeably fewer vibrations than their diesel counterparts … which we also got to play with.

That said, I’m not a “real” equipment operator, which means my seat of the pants impressions are probably worth less than those of the people who use these things every day. That’s why I was glad to have Mike Switzer, my co-host on The Heavy Equipment Podcast, along for the ride.

“It’s really impressive, and the articulation on the Steelwrist is incredible,” Mike told me, after hopping out of the demo EC230. “I’ve seen it before, obviously, but I’ve never had a chance to use it. I think every municipality needs to take a look at that.”

Electric compaction

Volvo electric compactors; image by the author.

Over on the compaction side, Volvo had its DD25 Electric vibrating drum compactor on display – where the all-electric tandem roller was joined by two all-new siblings being shown off for the first time ever: a pre-production DD15 Electric “mini” compactor prototype seemingly designed for sidewalks and driveways, and the TC13 Electric trench compactor.

The TC13 Electric is designed as a walk-behind unit that uses its heavy batteries to provide the compaction mass – but those heavy batteries won’t get depleted in the hour or so of operation that most trench compactors see on a busy day. To keep the little TC13 useful throughout the day, Volvo gave it a pair of 110 and 220V outlets.

TC13 power outlets; photo by the author.

Specs weren’t released, but Volvo’s compaction brand manager claimed those outlets were more than capable of keeping the rest of the job site’s battery-operated tools running all day long, and even packed enough juice (in a pinch) to power a portable office, table saw, or drill press.

“Did you see his face when I asked if it could run an arc welder?” asked Mike, smiling. “He said, ‘It’s not something we’d advise,’ but you could tell he liked that question.”

Yeah, he did!

Electrek’s Take

Jo Borrás looking for prizes; photo by Jefferson Yin.

Somewhere around the twenty minute mark of the “equipment ballet” show, something broke inside my brain. I think it was the sparks flying off the bucket when the L20 Electric scooped up a few thousand pounds of gravel and sand at full speed, scraping its bucket along the ground. Maybe it was the hydrogen-powered articulated loader, or the open bar.

Regardless, one thing that was made very clear at Volvo Days ’24 is that, while other companies are still developing the initial entries into the electric commercial vehicle space, Volvo has not just a full line of products – but an expanding line of products, with the company entering new spaces specifically because of the unique advantages electric offers.

As Volvo’s North American President, Scott Young, explains, the future is electric, and Volvo’s vision for the future has the company firmly in the leadership position … but more on that in part 2.

ORIGINAL CONTENT FROM ELECTREK.

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Lucid opens Detroit hub to tap into US legacy auto talent pool

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Lucid opens Detroit hub to tap into US legacy auto talent pool

EV maker Lucid Motors (LCID) opened its new office in Detroit this week, hoping to attract engineers from “one of the biggest talent pools in the Western world.”

Lucid sets up shop in Detroit for engineering talent

Lucid celebrated the grand opening of its new office in Southfield, Michigan, roughly 15 miles northwest of Detroit.

At its new office, Lucid is “growing our team of hardware engineers, R&D, operations, and more” as it looks toward its next growth phase.

“We need talent quickly, and that’s what this hub is about,” Eric Bach, Lucid’s senior vice and chief engineer, said at an event at the company’s new office.

Bach explained that as Ford and GM take talent from EV startups like Lucid, Tesla, and Rivian, Lucid looks to attract traditional engineering skills that are central to Detroit.

The company has already hired 24 engineers at its new hub, according to Lucid’s vice president of vehicle engineering, Charles Wildig told Automotive News. However, it plans to hire another 30 by the end of the year while growing its engineering team “exponentially.”

Lucid-Gravity-Air-EVs
Lucid Air (left) and Gravity SUV (right) models (Source: Lucid)

Wildig said that Lucid gets double the number of applications for every engineering position in Michigan compared to California.

“Michigan is one of the biggest talent pools in the Western world for automotive,” he said, adding, “It’s very difficult to find that kind of talent in California.”

Lucid-Gravity-SUV
Lucid Gravity SUV (Source: Lucid)

The next growth phase

Lucid is adding engineering talent as it prepares to launch its first electric SUV, the Gravity, later this year.

Last week, during its Technology & Manufacturing Day, Lucid revealed that the Gravity will feature an NACS port in 2025, unlocking access to over 15,000 Tesla superchargers.

Lucid also showcased how the electric SUV and advanced future technology will enable “mass savings.”

CEO Peter Rawlinson claims Lucid is already “years ahead of the competition” but promises new tech, like its next-gen “Atlas” drive units, will be even more advanced.

Lucid-tech-advantage
(Source: Lucid Motors)

The drive unit’s smaller, more efficient design will unlock more performance at a lower cost. The next-gen tech will power Lucid’s new midsize EV platform. Lucid teased its upcoming midsize electric SUV during the event, due out in 2026.

The midsize SUV will be the first to launch on Lucid’s new lower-cost platform. Last month, the company confirmed to Electrek that it plans to launch three lower-cost models on the midsize platform.

Lucid-teases-midsize-SUV
Lucid midsize electric SUV teaser image (Source: Lucid)

Lucid is already backing up its claim of being “years ahead,” with the 2025 Air Pure being the most energy-efficient mass-production car ever, with a record 146 MPGe and 5 miles per kWh efficiency. The cheapest trim starts at $71,400.

The Lucid Air is the longest-range EV on the market, with some models offering over 500 miles range.

Lucid-most-energy-efficient-EV
(Source: Lucid Motors)

Lucid’s Gravity electric SUV will launch later this year, starting at under $80,000. The midsize electric SUV is expected to launch in 2026, starting at around $50,000

Bach said Lucid is in talks with “many” automakers about sourcing its EV powertrain tech. The company already secured a deal with Aston Martin to provide EV battery and powertrain tech last June.

Because of its compact design, the powertrain can easily fit into rivals’ systems. “That means everybody can just plug and play technically,” Bach said. He added, “We are open for business,” and Lucid wants to “embrace” the competition.

Source: Automotive News, Lucid Motors

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