GM CEO Barra says there's no need to chase Tesla, Ford EV price cuts
GM's EVs already have 'very appropriate' prices
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General Motors is heading full-steam into the electric vehicle market this year.
It will have nine all-electric models on sale by the end of 2023 and expects to have delivered over 400,000 total by the middle of 2024.
This is despite an increasing number of competitors and new pricing pressure on high-volume segments driven by recent cuts announced by Ford and Tesla.
During GM's earnings call Tuesday morning, CEO Mary Barra said the company's EV plan is solid and does not need any pricing adjustments, with many of the upcoming models already undercutting what is on sale today and below the price caps set for federal tax credit eligibility.
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Mary Barra, GM chair and CEO, said the automaker will have nine electric models on sale by the end of 2024, including the $300,000 Cadillac Celestiq. (FREDERIC J. BROWN/AFP via Getty Images)
"Right now based on the interest we're seeing, the pricing we put out was very appropriate," Barra said.
This includes the $39,900 Chevrolet Silverado EV Work Truck that is scheduled to go on sale this spring and the $47,595 Chevrolet Blazer EV launching in the summer, which matches up against the Ford Mustang Mach-E.
"These are brand-new products into the marketplace that we have really strong interest [in]," Barra said.
The Chevrolet Silverado EV begins shipping this spring. (Chevrolet / Fox News)
The reservation books for several models, including the Cadillac Lyriq and GMC Hummer EV pickup and SUV are filled for 2023 and Chevrolet expects Silverado EV Work Truck demand to exceed supplies into 2024.
The smaller Equinox EV is scheduled to go on sale later in the year with a starting price of approximately $30,000 and a $44,995 version of the Blazer EV will be added early in 2024. The Mustang Mach-E now starts at $47,495, including the mandatory delivery fee. Chevrolet currently offers the lowest-priced electric vehicle available with the Bolt EV at $27,494.
The Chevrolet Blazer EV is a competitor to the Ford Mustang Mach-E. (Chevrolet / Fox News)
One wild card is the upcoming release of new tax credit guidelines in March, which will put into effect point-of-origin requirements on battery production. Barra said GM's investments in building a North American EV infrastructure put it in a good position to benefit from the program, which requires components to be manufactured on the continent and critical minerals to be sourced from approved free trade partners.
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There is also the question whether the full $7,500 credit can be applied to imported vehicles by classifying them as commercial and offering them to customers through leasing, which is what several automakers are doing today ahead of the final rule clarification. Through several partnerships, General Motors is one of the top EV manufacturers in China, but does not export any electric models or battery packs to the U.S.
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"When we get the final rules, we'll look, because we do have a global footprint, but I think we're focused on supporting North America production, primarily from North America and, to a certain extent, Korea," Barra said.