GM CEO is ‘disappointed’ in EV production, says affordable models will drive adoption
General Motors (GM) CEO Mary Barra said she is disappointed in EV production this year due to constraints. Meanwhile, GM’s leader believes new, affordable EVs like the Equinox and Bolt will help drive adoption.
After announcing a historic $10 billion buyback plan, GM’s stock is soaring on Wednesday. The company also revealed it would boost dividends by 33% and slash spending on Cruise.
The company’s biggest buyback plan comes after signing a new labor contract costing $9.3 billion through 2028.
GM’s new contract includes 25% wage increases, increased retirement and healthcare, a signing bonus, and paid leave. Barra said in an interview with Bloomberg that she is confident GM will be able to offset it “completely” with the plan in place.
With labor contracts taken care of, Barra said GM must remain balanced across stakeholders, stressing owners are also important.
The automaker reinstated full-year guidance with $9.1 – $9.7 billion expected in net income, compared to the previous $9.3 – $10.7 billion. Capital spending is expected at the low end of prior guidance with around $11 – $11.5 billion.
Barra said the company’s liquidity is “at record levels.” GM’s stock is up 10% following the news Wednesday.
Barra says affordable EVs will drive adoption
“Although I am disappointed with our Ultium-based EV production in 2023,” Barra said that GM has made “substantial improvements.”
GM expects significantly higher Ultium EV production in 2024. Barra explained the company was constrained by the automation to build modules. She stressed it was not an Ultium issue but rather a manufacturing hurdle.
GM is working through it and making improvements each quarter. The company expects to overcome it in the middle of next year. In the third quarter, GM delivered 4,222 Ultium-based EVs, compared to 15,835 Bolt EV/EUV models.
It’s still not a lot, but it’s over 200% more than the 1,395 delivered in Q2. Although GM “never saw EV adoption as a straight line,” Barra explained, the market is still growing. Barra believes new products, like the Blazer EV, and more access to charging will help drive EV adoption.
More importantly, affordable GM EV models like the upcoming electric Chevy Equinox and next-gen Bolt will be key in gaining market share.
Electrek’s Take
Despite headlines claiming automakers overestimated with EVs, the market is just going through a transition.
The EV market is still growing and expected to accelerate. As GM’s Barra explained, the key to this will be affordable EV models. Charging infrastructure is rolling out, and cheaper models that will drive adoption are coming.
Meanwhile, GM is pushing back the production of key models, including the Equinox, Silverado RST, and GMC Sierra Denali EVs.
I understand pleasing stakeholders, but if GM were really “all in” on EVs, it would show investors by doubling down to get these affordable models on the market.
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For the second time, a judge strikes down Elon Musk’s $55 billion Tesla CEO pay package as the company struggles to avoid seeing its sales slip year over year for the first time. Plus: an all-new look for Jaguar this Giving Tuesday on Quick Charge!
We’ve also got record EV sales from both Kia and Hyundai, with the latter seeing IONIQ 5 sales double over last year, more Tesla discounts in China AND North America, and more.
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Read more: Renault E-Tech T semi truck gets 600 km range for ’25, logs 19 million miles.
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“Tesla could not meet program standards” on Oklahoma’s NEVI EV charger installation program, so EVgo took over.
As Electrek originally reported in April, Oklahoma approved more than $8 million in federal funds for Tesla, Love’s Travel Stops, and Francis Energy to build DC fast chargers along its interstates.
The three companies were to provide a combined $7 million in private funding match to build 13 DC fast charging stations. The first round of awards would complete the buildout of I-35, I-40, and I-44 as Alternative Fuel Corridors.
Tesla was supposed to install three Superchargers at the I-44 exit 240 in Catoosa, the I-40 exit 240B in Henryetta, and the I-44 exit 125B in Oklahoma City. In order to qualify for National Electric Vehicle Infrastructure (NEVI) Formula Program funding, they had to be equipped with Magic Docks – that is, CCS compatibility.
However, OK Energy Today reports that Oklahoma Transportation Commissioners unanimously approved replacing Tesla with second-place EVgo yesterday.
Jared Schennesen, multi-modal division manager to the nine commissioners, said:
Tesla could not meet program standards for the gap awarded along I-44 in Oklahoma City.
Due to not meeting the program requirements, ODOT required that the award be revoked from Tesla as direct[ed] by state procurement rules and awarded to second-place finisher EVgo for this gap.
Schennesen didn’t specify exactly how Tesla couldn’t meet the program standards, but the article goes on to note that EVgo reduced its costs considerably compared to what Tesla’s project costs were:
EVgo won the award for a total of $519,740, and Schennesen said it reduced the total project cost by $317,932. The federal share of the project will increase by $201,781 bringing the final total to $801,780.
EVgo has more than 1,000 DC fast charging locations in 40 states and serves over 65 metropolitan areas.
Oklahoma’s NEVI EV charger installation program, EVOK, is responsible for spending $66 million from 2022-27 in NEVI Formula Program funds to create a state EV charging network. The federal NEVI program allocates $5 billion over five years to help US states create a network of EV charging stations. The funding comes from the Bipartisan Infrastructure Law.
The NEVI program requires EV charging stations to be available every 50 miles and within one travel mile of the Alternative Fuel Corridor. EV charging stations must include at least four ports with connectors capable of simultaneously charging four EVs at 150 kilowatts (kW) each, with a total station power capacity of 600 kW or more.
The charging stations must have 24-hour public accessibility and provide amenities like restrooms, food and beverage, and shelter.
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The US Department of Energy (DOE) says it will loan up to $7.54 billion to a Stellantis and Samsung SDI joint venture to help build two EV lithium-ion battery plants in Indiana.
Stellantis + Samsung EV battery plants loan
The joint venture is called StarPlus Energy LLC, and its huge project will create huge job growth: at least 2,800 jobs at the plants, plus hundreds more for parts suppliers at a nearby park.
At full capacity, the plants will produce about 67 GWh of batteries for Stellantis EVs in Kokomo, enough to supply about 670,000 vehicles annually, the DOE’s Loan Programs Office said. Stellantis said yesterday that the first plant will open in early 2025 and the second in 2027.
To secure the loan, StarPlus needs to implement its Community Benefits Plan, which includes working with community and labor leaders to create well-paying jobs. It’s unclear whether the loan will be able to be finalized before Donald Trump takes office on January 20, but according to the Associated Press, the DOE said “it would be irresponsible for ‘any government to turn its back on private sector partners, states, and communities that are benefiting from lower energy costs and new economic opportunities’ from the loans.”
Electrek’s Take
Since Trump is threatening tariffs all over the place to stimulate domestic manufacturing, it would be pretty dumb if he attempted to kill this loan. The DOE anticipates this and makes a point of saying in its announcement that “the project will greatly expand EV battery manufacturing capacity in North America and reduce America’s reliance on adversarial foreign nations like China, as well as other foreign sourcing of EV batteries.”
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