On June 11th, General Motors Corp. announced a reduction in their production of electric vehicles due to a lack of consumer enthusiasm for them.
As per the recent update, GM officials have decided to decrease the automaker’s Electric Vehicle (EV) production target by up to 100,000 vehicles for the year 2024.
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During the Deutsche Bank Global Automotive Industry Conference on Tuesday, GM CFO Paul Jacobson announced that the new production target for EVs will be between 200,000 and 250,000. This is a decrease from the previous target, which was between 200,000 and 300,000 for the year.
According to Jacobson, GM has the potential to make a profit from its electric vehicles if the company’s production target stays within the low 200,000s.
According to him, GM is set to inject $850 million into its self-driving unit, Cruise, in order to revive the brand.
According to Jacobson, GM will be manufacturing electric vehicles in accordance with the current market demand, which has turned out to be smaller than expected and is growing at a slower rate than projected.
In May, GM managed to sell over 9,500 electric vehicles. For the first quarter of the year, they sold a total of 16,425 EVs in the North American market. These sales accounted for 2.8% of GM’s new-car sales for the quarter.
In order to boost the sales of its electric vehicles, GM is offering incentives to potential car buyers.
To encourage consumer demand, the automaker is providing rebates of up to $7,500 for specific models, including the Cadillac Lyriq Electric, as well as financing deals.
