To fulfill that pledge in as little as 2 1/2 years, she faces some long odds against immense economic forces that are working against auto sales. Inflation has spiked, interest rates are rising, material costs have soared and a global shortage of computer chips is still braking assembly lines at GM and other companies.
Already the company has pledged to cut the starting price of the Chevrolet Bolt small SUV to around $26,000 later this year. GM is planning to roll out a Chevy Equinox small SUV with 300 miles of range for around $30,000 in fall 2023. And on Monday night in California, it will unveil a larger Chevy Blazer SUV that goes on sale next summer.
Part of the strategy is convincing buyers that an electric vehicle can meet all their transportation needs. Many EV owners, she said, also have a gas-powered auto for longer trips. “It’s pretty volatile right now,” Barra conceded. “We’re looking at many different scenarios as any prudent business leader would to make sure we’re ready for whatever, however the situation evolves.”
Barra said new car prices are skewed right now because automakers are allocating scarce chips to higher-margin vehicles, and prices should come down as more chips become available.