General Motors (GM) is reducing its forecasted sales and production of all-electric vehicles (EVs) for this year, citing slower-than-anticipated U.S. adoption of EVs.
GM Chief Financial Officer Paul Jacobson announced the company now anticipates producing 200,000 to 250,000 EVs in 2024, down from the previously stated range of 200,000 to 300,000. Despite this adjustment, Jacobson emphasized that the company continues to produce based on demand, which is growing but at a slower rate than expected.
“So at the lower end of that, and I think it reflects the momentum that we have in the business,” Jacobson remarked during a Deutsche Bank investor event on Tuesday, according to CNBC.
Jacobson also projected that U.S. EV sales will account for about 8% of the industry, lower than other estimates that predict around 10% for 2024.
GM maintains that its EVs will achieve variable profit positivity at the 200,000-unit mark. This milestone is expected to be reached in the fourth quarter of the year.
Amid this production shift, GM is launching its latest EVs, including the new entry-level Chevrolet Equinox EV, priced around $35,000 before federal incentives of up to $7,500. Additionally, GM has relaunched the Chevrolet Blazer EV after addressing software issues.
Both new models, which utilize GM’s “Ultium” EV platform and technologies, are vital to the company’s EV growth strategy.
This adjustment in EV targets follows GM’s announcement of a new $6 billion stock repurchase authorization, largely supported by sales of traditional gas-powered vehicles. The new buyback authorization complements an accelerated $10 billion share repurchase program announced in November 2023, which is set to conclude this month.
Years ago, President Biden said to GM CEO Mary Barra that “GM led” and helped electrify the auto industry, excluding U.S. EV leader Tesla from the conversation. Looks like that isn’t the case at all.
“We are very focused on the profitability of our [internal combustion engine] business, we’re growing and improving the profitability of our EV business and deploying our capital efficiently. This allows us to continue returning cash to shareholders,” Jacobson stated in a release.
