GM’s Rapid Retreat From EV Market Gains Speed

[Yardbird]

GM’s Rapid Retreat From EV Market Gains Speed​

Story by Douglas A. McIntyre
3 min read

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Key Points​

• General Motors Co. (NYSE: GM) has pulled out of one of its largest EV initiatives.
• GM saves some money now, but will it come to regret its decision.

Auto company after auto company struggles with slow electric vehicle (EV) sales in the United States and Europe. The only nation where EV sales are strong is China. Notably, Volkswagen says EV problems have damaged its bottom line. Yesterday, Stellantis CEO Carlos Tavares exited partly because of EV effort failures. General Motors Co. (NYSE: GM) has pulled out of one of its largest EV initiatives. It will sell its ownership in an EV battery factory to partner LG Energy. The facility is set to be completed in the coming months.

EV Plans Crumble​

What happened to GM's commitment to a bright EV future?
Building the $2.6 billion manufacturing operation was part of GM’s commitment to what it viewed as a bright EV future when it broke ground for the Michigan-based facility in 2022. The Wall Street Journal reports that, at that time, GM said it would produce a million EVs by 2025. That comment is similar to the one by Ford Motor Co. (NYSE: F). The number two U.S. car company planned to have the capacity to manufacture 600,000 EVs by the end of 2023. It pushed that date until this year and then abandoned it completely.

EV development and manufacturing have become a financial anchor for many of the world’s largest car companies. Ford will lose several billion dollars on its EV operations this year, which has dragged on its earnings. Analysts recently said Ford was losing $100,000 on every EV it sold.

GM’s retreat is due to reasons similar to those that have plagued most of the sector, except for Tesla and the most successful Chinese manufacturers. Drivers find EVs too expensive compared to gasoline-powered cars. They also worry about range, the availability of charging stations, and the time it takes to charge an EV battery. Rising gasoline prices were supposed to be an incentive for EV sales. However, gas prices are the lowest in over three years at $3 for a gallon of regular gas nationwide.

Selling its part of the EV battery plant puts GM in a difficult position. It saves money. However, when EV sales pick up, it will have abandoned a facility that might give it an advantage over competitors.


https://www.msn.com/en-us/money/com...&cvid=d5ee684e50384a919494edbe0705db59&ei=150

 

[markabby]

GM retreats, Stellantis moves forward. China is full speed ahead on EV's, in the US sales are down.

I can't keep up, unless GM just plans on buying batteries instead of making their own?

Kodak snubbed their noses at digital cameras too

 

[jejb]

However, when EV sales pick up,

It's not when, it's if.

Sounds like a good decision by GM. As more buyers grow to understand the shortcomings of EV's, the demand may become softer yet. This is what happens with .gov tries to manipulate the market.

 

[markabby]

didn't the government subsidize them to go to EV?

 

[mikeru]

I don't have anything against EV's in general. I think they make sense for some people if that's what they'd like to drive. I'm fine with car companies offering EV's for those who want them. I just have a problem with people in charge of making laws and mandates, who seem to know little to nothing about how real people use cars, telling me what I will have to buy the next time I shop for a new vehicle. Because of this I smile every time I read an article like this about a car company either pushing out EV commitment dates or abandoning them altogether.

 

[NETim]

And we all know the Federal government would NEVER lie to us about anything.

 

[jejb]

didn't the government subsidize them to go to EV?

Yes, with billions of our hard earned dollars. They also were and are subsidizing consumers up to $7500 in tax write off's to buy them. Should be illegal for them to interfere with the free market like they have.

 

[markabby]

Yes, with billions of our hard earned dollars. They also were and are subsidizing consumers up to $7500 in tax write off's to buy them. Should be illegal for them to interfere with the free market like they have.

this was interesting....

https://www.opensecrets.org/orgs/general-motors/summary?id=D000000155

 

[jejb]

this was interesting....

https://www.opensecrets.org/orgs/general-motors/summary?id=D000000155

Pretty good ROI for GM. $10 million in lobbying netted them billions of dollars of subsidies. The founding fathers must be rolling over in their graves.

 

[markabby]

Pretty good ROI for GM. $10 million in lobbying netted them billions of dollars of subsidies. The founding fathers must be rolling over in their graves.

subsidies go in, campaign contributions go out. This is how the government legally launders money back into their campaigns or elsewhere. ie: planned parenthood gets like 500 mill per year, in turn they donate tens of millions (of our money) back into the politicians that support them.

so, in essence, our tax dollars go to back to politicians we may not support or vote for. America is a corrupt country, from the top down, sorry to say, but, it's the truth.

 

[Tominator223]

I’ve counted 14 new Gas stations in my area. Within 10 miles. In the last 2-3 yrs. Don’t seem like we’re running out any time soon. As for gov they need to mind their own business & stay out of ours. Petro till I die. Not sorry

 

[jejb]

I’ve counted 14 new Gas stations in my area. Within 10 miles. In the last 2-3 yrs. Don’t seem like we’re running out any time soon. As for gov they need to mind their own business & stay out of ours. Petro till I die. Not sorry

I was in your state last Saturday to pick up a new motorcycle in the Waco area. Went to a Buc-ee's on the north side of Dallas. Never been to one before. Anyway, they had a bunch of EV charge stations. None were in use, but the fuel pumps were sure busy. Hard to see the business case behind putting in all these EV chargers when they only get used on holiday weekends, etc.