General Motors CEO Mary Barra says GM shares are up 7% on strong sales of combustion engines and electric vehicles, including the Bolt EV and UV in 2023. For 2024, GM plans to increase production of vehicles using the Ultium platform, which is the technology base for their new electric vehicles (EVs). The company aims to overcome parts production issues by the middle of the year to meet growing demand.
GM plans to launch the Chevy Equinox EV and Sierra EV later this year and anticipates that its electric vehicles will begin to generate operational profitability in the second half of 2024. This means that the revenues generated by the sale of these electric vehicles will cover variable production costs, such as materials and direct labour, before taking into account fixed costs such as administrative, research and development expenses.
Despite a slowdown in the adoption of EVs, analyses predict an increase in the penetration of electric vehicles from 7% to 10% in 2024.
Barra acknowledges that the role of hybrid vehicles is to respond to the changing regulatory environment and delays in charging infrastructure. GM has not yet announced specific plans for hybrids, but the technology is ready and will be rolled out in North America.
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