General Motors Delays Electric Vehicle Production Due to Profitability and Demand Concerns

GM's decision to scale back electric vehicle production comes amid a United Auto Worker's strike costing the automaker $200 million weekly in profit loss, a slow but steady rise in used EV sales, and plans to implement engineering efficiency improvements.

General Motors (GM) has scaled back its electric vehicle production targets due to profitability concerns, a UAW strike costing $200 million weekly, and a slowdown in EV growth.
Plans to build 400,000 electric vehicles by mid-2024 have been revised, with the changes designed to make vehicles less expensive and more profitable.
Models affected by the delay include the Equinox EV, Silverado EV and GMC Sierra EV, signaling decreased demand for electric trucks while boosting GM's savings by $1.5 billion next year.
GM's CEO, Mary Barra, linked the decision to profitability considerations, engineering efficiency improvements, and moderating the acceleration of EV production in North America to adjust to slower near-term growth in demand.
Despite the adjustment in EV production targets, GM still plans to achieve an annual EV capacity of 1 million units in North America by the end of 2025, part of a $35 billion investment towards becoming all-electric by 2035.