The Story:
GM CEO Mary Barra told investors on Wednesday that the company will launch a new electric vehicle (EV) line in 2021 that will be more cost-efficient to build and actually make a profit for America’s biggest automaker.
Profit? From an EV?
Barra made a bold prediction that battery costs will be brought down to less than $100 per kilowatt hour from the current $145/kWh on a new battery systems platform, but still offer a range exceeding 300 miles.
Other manufacturing costs will also be brought down, said Barra, and the rising demand for EVs worldwide, but more specifically in China, will help support strong sales.
Speaking at the Barclays 2017 Global Automotive Conference, this is what she had to say about GM’s plan:
” This all new battery systems platform will give us the ability to lower our costs and really, we believe provide a strategic advantage.
One of the other advantages we have is our strong position in China. Due to regulatory and the nature of the China market, the size of the China market we believe that we will become the world’s largest new energy vehicle market.
We are uniquely positioned as the number two market share leader in China.”
Clearly, GM is trying to take advantage of the regulatory environment in the world’s largest auto market, China, which is racing towards increasing its EV count and bringing an end to petrol- and diesel-powered cars by 2040.
So GM is ready to up its investments towards building electric vehicles, knowing that they have the market as well as government policies to support that strategic shift.
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