GM’s EV Sales Justify Chief Barra’s ‘Fundamental’ Belief in Electrification

On Jan. 3, General Motors Corp. (GM) reported EV sales of almost 44,000 for the last three months of 2024, a 125% gain from a year earlier, and 114,432 for the entire year, up 50% from 2023. For the year, GM saw its US auto industry market share improve 40 points to 17.0%.  

Mary Barra, the chief executive officer of General Motors Co., says she’s still a believer in electric vehicles but expects to make adjustments as events warrant.

“We fundamentally believe EVs are better,” she said at a December Automotive Press Association event. “Instant torque. They enable great design…We really think the consumer -- when there’s a robust charging network and when EVs are affordable and they’re in these segments that fit their lifestyles—they’re going to choose EVs.”

“From a battery perspective, we started working on having a dedicated EV platform for our vehicles in 2018,” Barra said. “I think we have the right battery technology. I think we’ve got the winning recipe to keep improving from a battery technology perspective.”

Major strategy adjustments

In early December, GM made a major adjustment in its EV strategy. The company said it will sell its stake in an almost completed Lansing, Michigan, battery plant to its joint venture partner LG Energy Solution. Terms were not disclosed. The automaker said it expects to recoup its Lansing investment.

Related:Tesla Q4 Sales Drop Marks 1st Annual Decline Since 2011: Investor Sentiment Divided

Detroit-based GM will now rely on two joint venture plants in Ohio and Tennessee to supply the automaker’s factories that produce EVs.

Battery plant workers celebrate the production of their 100 millionth battery cell at GM/LG's Ultium Cell facility in Warren, OH in December, 2024. Credit: Ultium Cells

“You saw us do that with the decision we made on our third LG plant,” the CEO said. “We didn’t need that capacity, we couldn’t meet the capacity we think we need for the first two plants.”

“We can’t get ahead of the consumer,” Barra said.

The move concerning the Lansing battery operation followed another adjustment by GM in October. The automaker said at that time it was dropping the Ultium brand name for its battery system, according to an October story on Forbes.com.

The disclosure came during an investor presentation in Spring Hill, Tennessee.

GM had heavily marketed the Ultium name. The battery system will still be used going forward.

During the October presentation, the automaker forecast it would end 2024 by building and wholesaling 200,000 GM-branded EVs. GM said it’s continuing to add new EV models such as the Cadillac VISTIQ and OPTIQ. The company also has said the Chevy Bolt is returning in late 2025.

Number 2 after Tesla in US EV sales

GM said in an October statement it “is taking EV market share from our competitors and pulling in many new customers. And we are making rapid progress toward EV profitability.” GM said it’s now the No. 2 US seller of EVs behind Tesla Inc.

Related:7 Major Battery Manufacturing Investments of 2024

Tesla is headed by Elon Musk, who has emerged as a close advisor for President-elect Donald Trump. Concerning ways to cut federal spending and reduce regulation.

That potentially could give Musk an advantage over Barra. At the December APA event, Barra was asked whether Musk could advocate for policies that would benefit Tesla over GM.

The CEO was careful with her answer.

“I can’t really speak to his intentions,” Barra said of Musk.

More chargers will lead to more EV buyers

Also in December, the GM chief said EV adoption may improve as the supply of chargers rises.

“There aren’t enough chargers right now,” she said. “People will adopt when it works for them.”

David Cole, chairman emeritus of the Center for Automotive Research, was once briefed by GM at the company’s technical center in Warren, Michigan, about its EV development.

Cole’s takeaway was GM’s strategy was to remove cost from EVs.

“They thought they were going to dominate the industry with a lower cost [electric] vehicle,” Cole said in an interview. “The key to being successful is being the low-cost producer. That’s a tremendous advantage.”

Related:Sustainable Manufacturing Expo Announces Key Industry Partners