General Motors will reduce its electric vehicle production targets for 2024 by at least 50,000 units. Instead of assembling 300,000 EVs, it now plans to build between 200,000 and 250,000.
The decision is “100-percent demand driven”, he said, meaning that GM no longer is suffering from any battery module supply problems and is “on track” to produce 300,000 units this year. On the up side, GM expects that by the fourth quarter, its electric vehicles will show a profitable balance sheet, meaning that they will be able to cover the cost of their production. This happens when around 200,000 vehicles have been produced.
“We don't want to end up in a position where we give out a production target and then we just blindly produce and end up with hundreds of thousands of vehicles in inventory because the market's just not there yet.”