General Motors (GM) has decided to briefly delay production of three electric vehicle (EV) models – the Chevrolet Equinox EV, Silverado EV and GMC Sierra EV – citing the need to “protect pricing” and improve their long-term viability.
According to GM CEO Mary Barra, this delay is intended to increase the efficiency and cost-effectiveness of production of these electric trucks, ultimately contributing to greater profitability. In essence, “protecting pricing” aims to support the company’s profit margins rather than offering more competitive prices to consumers.
The company also changed its optimism regarding projected EV sales figures due to demand growth appearing to be slower than expected. GM now in North America from 2022 to mid-2024 400,000 EVs plans to sell and by the end of this year, the total 100,000 EVs aims to produce. However, it remains committed to its goal of producing a total of 1 million electric vehicles by the end of 2025. Additionally, GM has aligned itself with the industry’s broader shift toward electric mobility by setting a goal of selling electric vehicles only in the U.S. after 2035.