GM CEO Mary Barra on EV strategy as 2024 election heats up
GM has flexibility in offering EVs and gas-powered vehicles to consumers: Barra
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General Motors CEO Mary Barra on Tuesday discussed GM's strategy for electric vehicles as the presidential election approaches and casts a shadow of uncertainty over the future of EV regulations.
An analyst on GM's earnings call asked Barra whether GM's EV strategy would shift if the next administration takes a less favorable view of policies promoting EVs after noting that one candidate, former President Trump, has discussed pulling back the federal EV mandate.
Barra explained that GM's offerings, including both EVs and traditional gas-powered internal combustion engine (ICE) vehicles, give the automaker flexibility in adjusting to meet consumer demand.
"Our strategy is to offer our consumers choice," Barra said. "We've got an incredible portfolio of vehicles, both EV and ICE, and we've got flexibility. So, we know we can win more customers as they embrace EVs. We're seeing that right now with 54% of EV sales being customers that are new to GM.
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General Motors CEO Mary Barra said she's pleased with the company's strategy for EVs and gas-powered vehicles given uncertainty about regulations in the next administration. (Anna Moneymaker/Getty Images / Getty Images)
"We do think the market for EVs will continue to grow, and we've got the performance, the technology and the range that customers want, especially when you look at our portfolio with the Equinox coming out right now, the affordability of that vehicle along with when we have the Bolt next year if we're giving consumers that choice," Barra explained.
"EVs are fun to drive, instant torque. I think our EVs have beautiful designs, the right range, the right performance," she added. "We'll be guided by the consumer. And, regardless of what the regulatory environment is, regardless, we're going to work to maximize because we've got that flexibility between ICE and EV."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 57.01 | -0.62 | -1.08% |
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GM is scaling up production of the Chevrolet Equinox EV. (Mario Tama/Getty Images / Getty Images)
Barra went on to say she thinks GM is in a "very strong position" and that she thinks the automaker's investments in EVs will be a factor given that they have created "thousands of jobs all over the country, including Ohio, Michigan and Tennessee."
GM's profit and revenue results beat analysts' expectations for the quarter despite slowing consumer demand for EVs.
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GM has backed off some of its ambitious EV production targets. (Paul Hennessy/SOPA Images/LightRocket via Getty Images / Getty Images)
The company is in the process of scaling up production of the Chevrolet Equinox EV and plans to launch several other battery-powered models in the months ahead, although it lowered its projected EV output for this year from an upper end of 300,000 units to 250,000 units.
GM last week declined to reiterate a target of 1 million units of EV production capacity in North America by the end of 2025.
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Barra also told investors GM would delay the opening of its Orion Assembly EV truck plant by six months until mid-2026. She also said the company plans to introduce plug-in hybrid vehicles in 2027.
General Motors
Shares of GM have advanced 29% this year, exceeding the S&P 500's 16% rise, as well as Ford's 13% run.
Reuters contributed to this report.