General Motors CEO Mary Barra said at a conference on Friday that electric vehicles selling for less than $40,000 could not yet be profitable. It was an unexpected statement from the head of a car manufacturer who was quite optimistic about affordable electric cars.
According to the report of ReutersBarra told conference attendees that the cost of EV batteries is still too high to make profitable vehicles in bulk that sell for $30,000 to $40,000, but predicts that the cost of internal combustion vehicles EVs will reach parity “around the end of the decade .. .maybe a little longer.”
Chevrolet Bolt EV 2023
Barra also said Tesla still leads in EV technology, profitability and scale, but added that the lead won’t be permanent. And she said GM was too slow to launch electric vehicles in China, the world’s largest new-car market and a strong growth market for electric vehicles. New Chevrolet and Cadillac EVs launching in China over the next 18 months will help rebuild market share there, she said.
Meanwhile, in the US, GM already offers the Chevy Bolt EV and Bolt EUV for less than $40,000. It discount of both variants for the 2023 model year, although they are currently expected to be discontinued.
But GM has promised to offer a base 250-mile version of the 2024 Chevy Equinox EV for a base price of $30,000 — an EV that, according to Barra’s latest statement, may not be profitable.
Green Car Reports has reached out to Chevrolet to clarify whether this could change any of GM’s product plans for affordable electric vehicles.
Chevrolet Equinox EV 2024
GM has been predicting future profitability for mass-market electric vehicles since 2017, when it announced that it would seek to create Large number of profitable, affordable electric vehicles. In 2018 it promises that it can make money from all-electric cars by 2021and a year later suggested electric cars could become profitable as early as this decade. Just last year, GM said electric vehicles will profitable in 2025 thanks to expected federal incentives.
GM’s future EV plans focus on its Ultium hardware, GM President Mark Reuss said to be profitable from Day 1. So it’s not clear how $30,000 Chevy Equinox EV—one of those Ultium models—consistent with the seemingly contradictory claims of Barra and Reuss. Will bigger, more expensive electric cars like the GMC Hummer EV and Chevy Silverado EV be profitable enough to cover the loss?
