General Motors will be slowing its electric car (EV) production in North America due to lower-than-forecast demand, pushing its manufacturing targets well into 2025. The decision saves the company $1.5 billion next year, CFO Paul Jacobson said today on GM’s quarterly earnings call.
The automaker had previously planned to sell 400,000 EVs in North America from 2022 through mid-2024 and produce 100,000 EVs in North America during the second half of this year. Models impacted by the delay will include the Equinox EV, Silverado EV, and GMC Sierra EV.
Last week GM announced delays in EV truck production at a plant near Detroit to “better manage capital investment while aligning with evolving EV demand,” hinting at weaker interest for electric trucks.
“We are also moderating the acceleration of EV production in North America to protect our pricing, adjust to slower near-term growth in demand, and implement engineering efficiency and other improvements that will make our vehicles less expensive to produce, and more profitable,” CEO Mary Barra wrote in her third-quarter letter to shareholders, published today.
qz.com/gm-is-slowing-ev-production-amid-labor-strikes-and-evo-1850954588