GM (1): Aiming for annual production of 1 million EVs in North America by 2025
Chevrolet and other major brand EV launches; securing battery supply a challenge
2023/09/06
- Summary
- EV products and launch plans for the U.S. market
- EV production capacity: Increase to 1 million units/year in North America by 2025
- Battery production: Aiming for 160GWh production capacity at four Ultium battery cell plants in the U.S.
- Battery Materials: Investing and partnering to build a stable supply chain
- Charging network: Cooperation with other OEMs to develop conditions for the popularization of EVs
- Self-driving business: California approves expansion of robotaxi business
- Joint development with Honda: Honda/Acura brand EV to be launched in 2024
Summary
 |
| Escalade IQ, the brand’s highest-end EV model SUV, scheduled to be launched in 2024 (Source: Cadillac) |
General Motors Company (GM) was quick to make a commitment to fully electrify its lineup, announcing a plan to eliminate internal combustion engines in new light vehicles by 2035 and promoting the introduction of electric vehicles (EVs) to market.
The company has set a goal of producing 1 million EVs per year in North America by 2025, but the production of the Bolt, which accounts for more than 90% of EV sales in the U.S., has been delayed due to a recall issue. The start-up of production of other models has also been delayed due to battery supply shortages. With only 50,000 EVs produced in North America in the first six months of 2023 in the U.S., it cannot be said that the market introduction of EVs is going smoothly. In the second half of 2023, the company plans to start selling GM's main brand EVs in the largest segment of the U.S. market, compact/midsize SUVs, and full-size pickups, and will accelerate the pace of EV production increase to achieve the target.
Conversely, GM has announced the construction of four battery cell plants in the U.S., citing the need to secure battery supply as a major issue for increasing EV production. At the same time, the company will continue to announce measures to secure future battery materials in the U.S. or from friendly countries, and promote the establishment of a stable supply chain.
In addition, in expanding the EV recharging network, we will work to improve convenience and create an environment conducive to expanding EV sales through alliances and joint investments with other OEMs.
GM increased its U.S. sales volume by 3% in 2022 to regain the No. 1 market share position, and in the first half (H1) of 2023, sales increased by 18% year-on-year (y/y), and an 18% y/y improvement in sales and 7% y/y improvement in net profit in the most recent financial report (H1 2023). With GM's full-scale market launch of its mainstay EVs scheduled to begin in 2024, it will be interesting to see whether the company can maintain profitability and proceed with the conversion of its product lineup to EVs as planned.
This Part 1 of the report series, which organizes GM's latest global developments and announced plans, reports on EV product development and related investments in North America. This report focuses on EV product development and related investments in North America as Part 1 of the report series that organizes GM's latest global movements and announced plans. Part 2 will report on EV product development, global sales, and corporate performance in China and other major overseas markets, etc., as well as GM's global production forecast by GlobalData.
Related reports:
Robotaxi Deployments Grow Despite Negative Setbacks (Aug. 2023)
Inflation Reduction Act: Support for EV/PHEV/FCEV Purchases (Jun. 2023)
New York International Auto Show: BEV HMI (May. 2023)
Mexico: Investment plans for near-shoring and EV shift (Apr. 2023)
GM (2) Sales supported by Chinese market, profits by U.S. truck sales (Jun. 2022)
GM (1): Accelerating its Electrification Strategy to become the EV Leader in the U.S. (Jun. 2022)
Free membership registration allows you to read the rest of the article for a limited time.