GM’s EV Ambitions: Chasing Tesla with a Growing Electric Lineup

GM’s electric vehicle ambitions are ramping up, despite falling short of earlier targets. The automaker is betting on an expanding EV lineup to boost sales and catch up to competitors, according to a recent CNBC report.

Let’s dive into the details of GM’s evolving EV strategy and what it means for the future of electric vehicles in the U.S. market.

Missed Targets, but Growing Momentum

GM CEO Mary Barra’s bold 2021 claim that the company would “absolutely” catch Tesla by 2025 hasn’t panned out. Slower EV adoption and production challenges have left GM trailing Tesla, Hyundai/Kia, and Ford in EV sales. It’s a setback, but not a knockout blow for the Detroit giant.

But GM’s not throwing in the towel. Rory Harvey, GM’s president of global markets, told CNBC: “We are definitely outstripping the industry in terms of growth, in terms of EVs.”

The numbers back him up – GM’s EV sales through August were up about 70% year-over-year. That’s a significant jump, showing there’s real momentum building behind GM’s electric push.

“It’s a step change in terms of our EV performance,” Harvey added during an interview at GM’s Cadillac headquarters.

This growth has put GM within striking distance of Ford in EV sales, though they’re still trailing Hyundai/Kia by a wider margin.

A Diverse EV Lineup

GM’s banking on variety to drive sales. They’ve got 8 “Ultium-based” EVs spanning from $35,000 to over $300,000. This range includes mainstream models like the Chevy Equinox and Blazer crossovers, three large pickup trucks, and luxury offerings from Cadillac, including the ultra-premium $300,000 Celestiq.

Two more Cadillac models are set to launch by year-end, bringing the total to 10 – an industry-leading number.

“We have the most comprehensive EV lineup out of any manufacturer in the industry, in the U.S., at the moment,” Harvey reportedly boasted.

This strategy stands in contrast to competitors like Tesla, which offers five models ranging from the $39,000 Model 3 to the $100,000+ Cybertruck. Hyundai/Kia, while offering nine models, doesn’t quite match GM’s price range spread.

Challenges Remain

It’s not all smooth sailing. EVs are still less profitable than gas-powered models for GM. This profitability gap is a significant hurdle, but GM expects EVs to become profitable on a production basis once they reach an output of 200,000 units by the fourth quarter.

The company’s also had to scale back some ambitious targets, including North American production capacity of 1 million EVs by 2025. These adjustments reflect the realities of the market and the challenges in ramping up EV production.

But the company’s staying flexible. Harvey noted: “If you reach some peaks and drops as you go through, then we have the ability to either increase production or to slightly detune production, so that we can meet the customer demand.”

The Road Ahead

GM’s maintaining its goal of producing 200,000 to 250,000 EVs this year, a target revised downward from their initial 200,000 to 300,000 range. This adjustment shows a more cautious approach, but still represents significant growth.

And they’re not letting up on the gas (or should we say, electricity?). Harvey’s optimistic: “We anticipate quarter four will be strong in terms of EV adoption. So, we’re looking forward to that close, and looking forward to taking a disproportionate share of the upside.”

The company’s also investing heavily in customer engagement.

“We’re doing a terrific amount now in terms of roadshow events, in terms of getting customers into our vehicles, making sure that our fleets at our dealerships have the right level of EVs,” Harvey explained, according to CNBC.

EVXL’s Take

GM’s EV strategy aligns with the broader industry shift towards electrification. While they may have overestimated initial adoption rates, their diverse lineup positions them well for the long game. As we’ve seen with other GM EV developments, the company’s commitment to electrification remains strong.

Their approach of offering EVs across various price points could help accelerate mainstream adoption, potentially bridging the gap between early adopters and the mass market. It’s a strategy that acknowledges the diverse needs and budgets of American consumers, which could pay off as EV adoption continues to grow.

However, the challenge of profitability remains. GM’s ability to make EVs as profitable as their gas-powered counterparts will be crucial for the long-term success of this strategy. The next few years will be critical in determining whether GM can truly challenge Tesla’s EV dominance.

What do you think about GM’s EV strategy? Can their diverse lineup help them catch up to Tesla? Is GM on the right track, or do they need to adjust their approach? Share your thoughts in the comments below!