General Motors is accelerating its transition to electric vehicles, considerably increasing its near-term spending as it introduces new models and expands production capacity. The world’s largest automaker planned a 30 percent increase in investment to $35 billion through 2025, as well as plans to develop two more battery cell factories. Some of the money will also go to the company’s autonomous car development. The business cites positive consumers’ attitudes to its early electric vehicle (EV) models as well as favorable government legislation as reasons for its optimism that the hard work will pay off. GM CEO Mary Barra stated, “We see rising enthusiasm for electrification in the United States, as well as consumer preferences for our product range.” “We are boosting our spending to expand quicker because we see enthusiasm for electrification and customer demand for our product portfolio developing in the United States.”
“Our workers, customers, dealers, suppliers, unions, and investors, as well as governments, are increasingly convinced that electric vehicles and self-driving technology are the keys to a cleaner, safer future for all.”
In the aftermath of Tesla’s rise and as governments adopt measures to address climate change, the announcement is the latest statement of confidence in an EV future by a heritage carmaker. Ford recently received accolades for its introduction of the all-electric F-150 pickup vehicle, and announced that by 2030, EVs will account for 40% of its total volume.Startups have faced speed bumps while the car majors have increased their commitment to EVs. Lordstown Motors announced the resignations of its CEO and CFO earlier this week, following an examination that found some of the company’s assertions concerning vehicle pre-orders to be false.This came after the business announced it didn’t have the funding to start commercial manufacturing.
Since President Joe Biden’s victory in November, GM has taken a number of EV-related measures, including promoting electric vehicles as part of a climate-change plan. GM increased its projected expenditure on electric vehicles and autonomous vehicle technologies from $20 billion to $7 billion shortly after the election. In November, the firm also dropped out of a lawsuit challenging California’s fuel efficiency standards, which had been backed by ex – president Donald trump, and said in January that it planned to eliminate tailpipe emissions from new light-duty cars by 2035. GM also raised its second-quarter financial projection. Operating earnings for the first half of 2021 are now expected to be between $8.5 billion and $9.5 billion, up from $5.5 billion previously forecast.