GM CEO Mary Barra Reveals Simplified EVs for 2025

General Motors CEO Mary Barra revealed during the company’s second-quarter earnings call with analysts that the company’s EV plans are on track thanks to progress in manufacturing and the simplification of its’ EVs’ systems.

“Our EV portfolio is scaling well and gaining market share,” Barra said. “In fact, our U.S. EV deliveries grew 40 percent year-over-year in the second quarter, while the industry grew at 11 percent. We're encouraged by these early results because disciplined volume growth is key to earning positive variable profits from our EV portfolio in the fourth quarter and maintaining strong ICE margins.”

The company will make its EV business viable by reducing costs through the elimination of unnecessary complexity, she continued. “Winning with simplicity, which is our drive to eliminate unnecessary complexity in the way we engineer and equip our vehicles, will help ensure that we can continue to sustain and even improve our margins in the future. For example, through smarter contenting and optimizing selectable options, we have been able to eliminate more than 2,400 unique parts on ten vehicles we're launching through the first quarter of 2025.”

Barra singled out the Cadillac Lyriq for particular attention. “On the 2025 Cadillac Lyriq alone, we've reduced the part count 24 percent from the 2024 model year with no compromises to performance or features. The list of parts or subsystems that we no longer need to design, engineer, source, install, and warehouse is extensive and includes complex and relatively costly seat assemblies, consoles, door trims, and fascias.”

Shrinking the options list to reduce variability was also crucial in simplifying the car’s electrical system, she added. “A crucial element is reducing the number of buildable electrical combinations, which is delivering hardware and software quality improvements as well as savings. The work is helping us meet our $2 billion fixed cost reduction program this year and the savings will be even greater in the future.”

Of course, simplification wouldn’t have mattered if GM’s EV production was still hamstrung by the problems plaguing its EV battery module assembly process. “Our EV portfolio is growing faster than the market now that our module issues are resolved and we are scaling production. Our early sales are mostly incremental about 54 percent of customers are new to GM and we're working to increase our conquest rate by raising awareness and launching new models.”

It is a lot easier to have good news about EV sales and market acceptance when it is possible to assemble those vehicles, so GM’s EV fortunes are improving now, she said. “Our best-selling EV so far this year is the Cadillac Lyriq and it is now the market-leading luxury EV in 22 states including Florida, Texas, and Michigan. The GMC Hummer EV and the Chevrolet Blazer EV are also building momentum.”

The all-electric version of the popular Chevrolet Equinox crossover SUV is in position to contribute soon. “To unleash the next cycle of EV growth we're scaling production of the Chevrolet Equinox EV with its unique combination of performance, technology, range, and affordability. We delivered our first thousand units late in the second quarter and the reaction from customers, dealers, and the media is very strong.”

The Equinox will be followed by a barrage of EV models, Barra said. “Over the next several months, GMC will launch the Sierra EV, and the Cadillac Lyriq will be joined by the Optiq, Escalade IQ, and Celestiq. Then next year, when we follow with the Celestiq, Cadillac will have a beautifully designed EV in every global luxury SUV segment. We're going to focus on winning new customers with these nameplates, as well as with the next generation Chevrolet Bolt EV because they represent the largest growth opportunities for us.”

Amid this rosy assessment of the state of the EV market, Barra added some realism in recognition that EV infrastructure headwinds have required adjustments to previously more aggressive rollout schedules. “We've also made adjustments to ensure we have a balanced approach as the market develops. This includes deferring Buick's first EV which had been planned for 2024. As we're expanding choice, other barriers to EV adoption like public charging access are also improving.”

That means nailing down the details of increasing customers’ access to more EV charging networks. “We are working to finalize commercial agreements with Tesla to give our customers access to their charging network. The IONNA fast charging venture we joined is expected to bring its first chargers online before the end of the year, and customers are telling us the drive-through plazas we're rolling out with Pilot company are the best public charging experience out there.”

She also hinted at moves to more cost-effective battery chemistries and formats in addition to the current Ultium pouch-style cells. “As we go forward, we're going to bring additional capacity online in a measured cadence. This will enable us to better optimize our battery chemistry and form factors to meet our customers' needs on cost and range.”

Additionally, Barra said the company will push back the launch of electric pickup truck production by six months.  “We've also decided to reopen the Orion assembly as a battery electric truck plant in mid-2026. The new timing is six months later than our plan heading into the year. We're confident that we can meet customer demand for standout EV trucks in the interim by leveraging the production capability and flexibility we have in Factory Zero [Where the company builds the Hummer EV].