General Motors plans to make a profit from the manufacture of a new family of electric vehicle which the company wants to launch in 2021 and will be less costly to make, said the Chief Executive Mary Barra of the No. 1 U.S. automaker.
Reporting the largest ever quarterly loss recently was Tesla – a rival for all wannabe electric car manufacturers, the plans announced by GM seem to be directly pointed at the loss making electric vehicle specialist Tesla Inc. Tesla has been struggling to launch the affordable, high-volume Model 3.
“We are committed to a future electric vehicle portfolio that will be profitable,” Barra said at the Barclays Global Automotive Conference.
Ca manufacturers such as Tesla, Ford and others are attempting to find out ways to make money out of producing electric and autonomous vehicles which are referred to as EVs and AVs, even though they are touted as being the keystones of future transport.
The new details of GM’s aggressive electrification strategy were detailed by Barra ad includes the development of an all-new electric vehicle platform which would have the capacity to accommodate multiple sizes and segment. Such vehicles produced would be sold by various GM brands both in the United States and China.
Without providing any specifics, its plan of launching 20 new v was announced by GM in early October.
Compare this with the announcement of Ford of the introduction of 13 “electrified” vehicles – most of which would be hybrid gasoline-electric models by 2022.
China, despite its strict production quotas on electric vehicles, is among the top focus markets of GM, Barra said and added that the company has an aim of selling 1 million electric vehicles annually by 2026. GM China will not require to buy credits from other companies and the company, along with its joint-venture partners, has the potential to meet the 2019 electric vehicle requirements there, said GM’s China chief on Monday.
A new battery touted to be 30 percent cheaper compared with one used by Chevrolet Bolt will be the cornerstone for GM’s effort at cost reduction on electric vehicles.
Quicker recharge and holding of more energy would be the characteristics of the new batteries, GM said. The new batteries are being designed to be able to push the distance travelled on a single charge to more than 300 miles (483 km). 238 miles for a single charge is the current capacity of the Bolt.
Plants in the United States and China would give the company the power to build high volumes of the new batteries, Barra said. by 2026, the company expects to sell 1 million electric vehicles, she said.
She described GM as “the only fully integrated developer of AVs with true scale capability.”
“We are not capital constrained in our EV or AV development,” she added.
(Adapted from Reuters)