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GM says supply chain issues won’t affect EV profitability by 2025  

By Editor - Thu Nov 17, 3:37 pm

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General Motors says supply chain constraints won’t hinder the automaker’s goal of reaching electric vehicle profitability by 2025. GM expects its EV portfolio to have “the same margin profile” as its internal combustion engine portfolio over the next three years once factoring in U.S. tax credits for cars and trucks, CEO Mary Barra said Thursday at GM’s investor conference. The automaker expects to generate more than $50 billion in revenue from sales of its 30 EV models in 2025, with profit margins in the low to mid single digits. Investors have been skeptical of GM’s promises, citing macro headwinds like increased battery raw material costs. Doug Parks, GM’s executive vice president of global product development, purchasing and supply chain, admitted that those costs could put GM’s targets at risk. However, Parks said a combination of increased efficiencies in GM’s Ultium EV platform — which is the underlying EV and battery architecture that will help GM scale its EV lineup — and supply chain agreements that are locked in through 2025 will reduce those macro impacts. “GM has signed binding agreements to secure the battery raw materials to support 1 million units of annual capacity in North America by 2025,” said Parks

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GM says supply chain issues won’t affect EV profitability by 2025

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