General Motors' fall electric-vehicle rollout strategy shows it's confident in its ability to weather the current shakeout in the EV industry, analyst Brian Downey, executive editor of Cox Automotive division Autotrader, told CNBC.
Downey reported EV sales are not as high as predicted, with:
- Inventories at 92,000 as of June 26, up 350% from mid-2022.
- Automakers newer to the EV market, like Kia, Porsche, Jaguar and Hyundai, see lower sales than expected.
- Ford Mustang Mach E sales have fallen.
GM CEO Mary Barra emphasized during an earnings call that the company will double its EV production to 100,000 units in the second half of the year. That includes the highly anticipated electric Chevrolet Silverado pickup truck, as well as EV versions of Chevy's Equinox crossover and Blazer compact sport-utility vehicle.
The automaker has set a goal of 400,000 units of EV production by early 2024 and turning a profit in its EV business by 2025, according to CNBC.
GM also raised its 2023 profit guidance for the second time this year in the earnings call. The automotive division's free cash flow is now expected to be between $7 billion to $9 billion, which is an increase from the previously projected $5.5 billion to $7.5 billion.
Earlier in July, GM announced a plan to cut costs by $10 billion. Barra clarified during the earnings call that the cut in capital spending was not because of a decline in market demand. “There was no market-driven slowdown,” she said.
In the first half of 2023, Cox Automotive reports that GM sold approximately 36,000 electric vehicles, CNBC reported.
Originally posted on Auto Dealer Today