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Despite a truly terrible year for GM that involved plants being shut down for weeks due to a union strike, Bolt battery recalls, EV production problems, and the nightmare that keeps on giving that is Cruise, General Motors says it should tally up nearly $10 billion for 2023 – but we certainly don’t owe that to stellar EV sales.

GM released its annual forecast with fresh clarity, it says, about labor costs after the ink has dried on new union contracts in North America. Plus it has outlined its upcoming EV strategy, and how it plans to hurdle the fallout from Cruise, which already cost the company $2.7 billion last year.

Last November, GM said that it expected to reach nearly $10 billion, despite the $1.1 billion hit from the six-week UAW strike last year. Plus the Chevy Bolt EV battery recall costs $800 million in costs.

Still, CEO Mary Barra said that GM will “fully offset” those higher labor costs, with $2 billion worth of cuts part of the plan, meaning a lot of lost salaried jobs, reduced marketing spending, and “more efficient” manufacturing operation, according to Automotive News.

EV sales were rough last year: In 2023, GM delivered 75,883 BEVs in the US, about 2.9% of its total volume. Still, that’s a 93% bump from 2022. GM forecasts its total US auto industry sales to hit 16 million in 2024, but it has dropped its goal of making 400,000 EVs through mid-2024. Still, it is aiming to have 1 million EVs by 2025.

This year, the automaker expects adjusted earnings to be anywhere from $12 billion to $14 billion.

GM also says it hopes to turnaround its slow EV ramp-up, particularly around the issues with the Ultium battery architecture and supplier lag, Automotive News reports. GM sent teams up to help set up the assembly lines, and add module capacity to more EV plants, the report said.

Also, last month, Chevrolet stopped sales of its Chevy Blazy EV due to software issues.

General Motors said earlier this month that is finally ramping up production of its Cadillac all-electric Lyriq SUV this year. Barra also expects GM’s “competitive position” to improve, EV-wise, this year with the GMC Hummer EV, Chevrolet Silverado truck, and Blazer EV, although GM has a stop sale on the Blazer due to software issues.

Electrek’s Take

GM has some major hurdles ahead of it in its very immediate future. One, it needs a successful, problem-free launch of its Equinox EV, which starts at $35,000. Morningstar analyst David Whiston said that is its chance to jump ahead of Tesla in the only space Tesla doesn’t hold the reins – and that’s affordable EVs, reports Automotive News.

Dealing with Cruise is another top priority for GM, which just released its own investigation into what happened after a Cruise robotaxi struck and dragged a pedestrian about 20 feet rather than stopping in San Francisco. California’s Department of Motor Vehicles quickly pulled Cruise’s operating permit after the incident, with Cruise pausing all of its operations nationwide soon thereafter – it says it plans to restart in one city, but details aren’t yet available, and honestly, it’s hard to imagine that actually happening.

Meanwhile, a federal probe and independent investigations are looking into whether or not Cruise purposely withheld video footage of the incident from federal investigators. CEO and founder Kyle Vogt called it quits on November 19, followed by a mass layoff of 900 employees as well as nine top execs. Cruise is facing a potential $1.5 million in fines and additional sanctions over its failure to disclose details about the accident. So GM has its work cut out for it.

Photo credit: General Motors/Cadillac


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House Democrat presses oil CEOs for details of Trump’s fundraising dinner at Mar-a-Lago

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House Democrat presses oil CEOs for details of Trump's fundraising dinner at Mar-a-Lago

Rep. Jamie Raskin (D-MD) speaks during a House Committee on Oversight and Accountability hearing on Capitol Hill in Washington, DC, on September 28, 2023.

Mandel Ngan | AFP | Getty Images

The House Oversight Committee’s top Democrat asked oil executives to reveal whether former President Donald Trump had proposed a “quid-pro-quo” arrangement to them at a recent Florida fundraising dinner, according to letters released Tuesday by Rep. Jamie Raskin, D-Md.

The letters arose from a Washington Post report that Trump hosted the executives for dinner Apr. 11 at his private club, Mar-a-Lago. “You all are wealthy enough,” Trump reportedly told the assembled guests. “You should raise $1 billion to return me to the White House.”

The former president then reportedly told the oil executives that if they helped him win another term as president, he would reverse the Biden administration’s freeze on permits for liquefied natural gas exports, auction more oil drilling leases in the Gulf of Mexico and roll back rules on auto emissions.

The reporting raises “significant potential ethical, campaign finance, and legal issues,” Raskin wrote.

The issues “flow from the effective sale of American energy and regulatory policy to commercial interests in return for large campaign contributions,” wrote Raskin, who is the ranking Democrat on the Oversight Committee.

Raskin asked the executives to provide descriptions of any discussions related to policy proposals or campaign finance they had at the dinner, as well as any efforts by the CEOs’ respective companies to support Trump’s campaign.

A general view of Republican presidential candidate and former U.S. President Donald Trump’s Mar-a-Lago property, ahead of his watch party event to mark the Super Tuesday primary elections, in Palm Beach, Florida, U.S. March 5, 2024. 

Marco Bello | Reuters

The letters were sent to Chevron CEO Mike Wirth, ExxonMobil CEO Darren Woods, Continental Resources CEO Robert Lawler, Chesapeake Energy CEO Domenic Dell’Osso, Occidental Petroleum CEO Vicki Hollub, Venture Global CEO Mike Sabel, Cheniere Energy CEO Jack Fusco, EQT CEO Toby Rice and the CEO of major oil lobby American Petroleum Institute Mike Sommers.

A spokesman for the Trump campaign did not immediately respond to CNBC’s request for comment on the congressional request.

Trump would hardly be the first presidential candidate who made campaign promises to certain groups in order as he asked for donations.

But the wining and dining of executives from just one industry at a candidate’s residence, like Mar-a-Lago, raised eyebrows.

Corporations are prohibited from donating directly to presidential candidates. They can contribute to PACs and their employees’ can make private donations, but neither can do so if the donation is intended as a bribe in exchange for favorable treatment.

Despite Raskin’s demands, and his deadline of May 27 for responses, as long as Republicans hold the House majority there is very little that Raskin can do to force any of the oil execs to turn over information.

Nonetheless, Raskin’s decision to demand answers from Trump’s dinner guests could potentially benefit his fellow Democrats in a different way.

That’s because corporate executives typically go to great lengths to avoid becoming the targets of congressional requests for information.

The prospect of getting caught up in Raskin’s inquiry could potentially be enough to make some private sector leaders reconsider whether to accept an invitation to a small, Trump fundraising dinner.

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Toyota once again ranked as worst automaker on climate lobbying globally

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Toyota once again ranked as worst automaker on climate lobbying globally

Toyota has the worst climate lobbying score of any automaker, and the third-worst 2030 EV production plans, according to InfluenceMap’s annual report on climate lobbying.

Another year, another report showing how bad Toyota is for the environment.

Toyota has routinely ranked at the bottom of InfluenceMap’s climate policy engagement rankings, and this year is no different.

InfluenceMap routinely ranks automakers and auto industry associations based on how much they lobby to stop climate policy goals. These rankings don’t just show automakers’ EV plans, but also show how much each automaker is doing to try to stop governments from protecting the populace from pollution.

Some of this lobbying comes from automakers themselves, and some of it comes from their membership in trade associations, which aggregate the positions of several companies to increase lobbying power.

InfluenceMap looks at the actions of these trade associations across the globe, and ranks automakers based on how many associations they’re a member of, how many briefs they’ve filed in favor of or against various climate policy goals, and what their plans are for the future of their manufacturing.

This is broken down into an “organization score” (how much the organization itself lobbies), “relationship score” (membership in trade organizations and how positive their lobbying efforts are), “engagement intensity” (how involved in lobbying the corporation is), and what the manufacturer’s EV manufacturing plans total up to.

Tesla led the list, but only received a “B” score because of its low engagement intensity. While Tesla supports positive climate policy and is generally a member of groups pushing positive instead of negative climate policy, it doesn’t lobby as much as other organizations do (a situation that may be made worse by the departure of Tesla’s policy head in April).

Some other automakers were given kudos for occasional positive moves, like Ford, GM, VW and Mercedes. But pretty much nobody got what could be considered a passing score – with “C-” grades or worse for all but three automakers.

And as usual, the Japanese automakers are ranked among the lowest. The Japanese EV industry has been slow to electrify, putting an important national industry at risk. Nissan is the standout from amongst the Japanese, but it still did not receive a passing grade.

On production plans, most automakers score poorly, with only 3 of the 15 automakers analyzed having commitments compatible with the International Energy Agency’s target of 66% EVs by 2030. This number is necessary to have any chance of limiting climate change to 1.5ºC. Forecasts suggest the industry will only produce 53% EVs by 2030 at current pace.

Toyota does not actually rank last place on this measure – Honda and Suzuki are behind it. But given the intensity of Toyota’s negative climate lobbying, it gets the crown for worst automaker on climate once again, continuing the several years it has worn it.

For more detail into the rankings, read the full InfluenceMap report here.

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Ford set up a secret course in its backyard to fine-tune the new Mustang Mach-E Rally

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Ford set up a secret course in its backyard to fine-tune the new Mustang Mach-E Rally

To ensure its new Mustang Mach-E Rally car is ready to tackle any terrain, Ford set up a secret course to test it. Ford says its new electric rally car is a testament to what’s possible when you combine passion with design and engineering. Check out how the Mach-E Rally car evolved below.

The electric Mustang rally car is here

“Can we make a rally-inspired version of the Mustang Mach-E?” Ford’s product planners, Peter Schultz and Craig Migliori, were asked in 2022. Their answer? Absolutely.

Shultz and Migliori took a “hand-me-down” Mustang Mach-E GT and added new wheels and off-road tires. After testing it at Ford’s Michigan Proving Grounds, they were confident it could become a reality.

The team lifted the Mach-E GT 1″ with RallyCross-tuned shocks and springs to enable it to tackle rougher terrain. Meanwhile, 19″ wheels wrapped in Michelin CrossClimate 2 rubber and underbody shielding are added to help protect the vehicle.

Not only did the Rally car need off-road capability, but the team also knew it needed a rugged design to accompany it.

Contrasting accents on the upper and lower body moldings, a front splitter and rear spoiler, and a black painted steel roof are added for a more aggressive style. The Mustang Mach-E also features built-in rally-inspired fog lights.

Ford-secret-course
Mustang Mach-E Rally testing (Source: Ford)

To prove the modifications were worthy, Ford off-road attributes engineer Chris Berchin and vehicle engineering supervisor Jay Kistler put the electric Rally car up to the test.

Ford sets up secret rally course for testing

The team set up a secret 500 combined mile “torture test” course at Ford’s Michigan Proving Grounds. The new course was designed to put the Mustang Mach-E Rally through the equivalent of about ten years of monthly rallycross racing.

Ford-secret-course
Mustang Mach-E Rally testing (Source: Ford)

Tests included tight turns through loose dirt terrain. “We tested in numerous different weather scenarios and temperatures with conditions ranging from muddy to dry – typical of what rallycross competitors might face,” Berchin explained.

“Likewise, the surface is dirt of varying composition, allowing for different traction scenarios.” Before building the course, the team went to Rallycross events and interviewed drivers to make sure they were projecting a true representation of what the environment looks and feels like.

Ford-secret-course
Mustang Mach-E Rally testing (Source: Ford)

Using this info, Ford engineers plotted the course with a full computer-aided engineering (CAE) analysis, complete with mapping elevation, exact speeds, timing, and more.

Ford used the tech to make it feel and look like a rally course with data to back it up. The secret in-house course enabled Ford to keep cost and development time down while keeping the electric rally car under wraps.

Ford’s RallySport drive mode unlocks the full potential of the electric Rally car, enabling bigger slides, a more linear throttle response, and aggressive damping for better control.

The Mustang Mach-E Rally has 265 miles EPA estimated range with up to 480 hp and 700 lb-ft of torque. Charging from 10% to 80% is expected in 36.5 minutes. Ford’s new Mustang Mach-E electric Rally car is available for order starting at $59,995.

Are you ready to drive off in a new Ford Mustang Mach-E? You can use our link to view deals on the 2024 Ford Mustang Mach-E in your area.

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