Mark Reuss, president of General Motors, believes that the group has finally found the path to profitability for electric vehicles. He is convinced that the development of the Ultium platform will make it possible to produce profitable electric models by 2025.
General Motors is on the path to profitability
According to Reuss, 2025 will be the tipping point for electric cars from the group’s brands to become profitable. The big boss of General Motors spoke at the congress organized by Automotive News in Detroit, Michigan. Mark Reuss said his company made 50,000 electric vehicles in North America in the first half of 2023. 100,000 will roll out of U.S. factories in the second half.
According to him, ” As our facilities grow, we’re going to have cost-effective electric vehicles. We are betting on a platform designed solely for electric rather than modernizing our thermal vehicles “. A strategy that most manufacturers have finally decided to adopt. Volkswagen is following this same trajectory with its MEB platform which already equips more than a million electric models.
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A single platform and economies of scale
According to the boss of General Motors, the IRA (Inflation Reduction Act) had no influence on the automobile group’s strategy. He affirms that ” GM made the decision to move all electric vehicles to the Ultium platform four years ago “. He specifies that the company’s mission has always been to find ” the path to profitability as quickly as possible “. And this requires economies of scale and a single platform.
Recently, Paul Jacobson, financial director of General Motors, nevertheless recognized that “ the company’s range of electric vehicles has been affected by difficulties in battery assembly “. The slow pace of manufacturing Ultium batteries impacts the availability of current electric models. Not enough to reassure customers who are waiting for future models like the Chevrolet Blazer, the Equinox or the Cadillac Escalade IQ.
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