General Motors Corp. officials announced a reduction in their production of electric vehicles due to a lack of consumer interest in them.
According to reports, GM officials have decided to lower the automaker’s electric vehicle production goal by up to 100,000 vehicles for the year 2024.
During the Deutsche Bank Global Automotive Industry Conference on Tuesday, GM CFO Paul Jacobson announced a revised production target for EVs. The new target is set between 200,000 and 250,000, which is lower than the original range of 200,000 to 300,000 for the year.
According to Jacobson, if GM can keep its production target in the low 200,000s, the automaker will be able to generate a profit on its EVs.
According to him, General Motors is preparing to revamp its brand by investing $850 million in its self-driving subsidiary Cruise.
According to Jacobson, GM has decided to manufacture electric vehicles based on market demand, which has turned out to be smaller than expected and is growing at a slower pace than originally projected.
In May, General Motors managed to sell over 9,500 electric vehicles (EVs) and a total of 16,425 in the North American market during the first quarter of the year. These sales accounted for 2.8% of GM’s new-car sales for the quarter.
To boost the sales of its electric vehicles, GM is offering attractive incentives to potential car buyers.
To generate more consumer demand, the automaker is providing up to $7,500 in rebates for specific models, including the Cadillac Lyriq Electric, and attractive financing deals.