Important lessons learned
- By 2035, GM plans to stop producing automobiles with internal combustion engines entirely.
- By the same year, the carmaker intends to make all of its facilities worldwide carbon neutral.
- By 2025, GM plans to introduce 30 battery-electric cars (BEVs), investing $27 billion in EV research and development.
By 2035, General Motors (GM) intends to phase out all internal combustion engine (ICE)-powered vehicles.
The automaker’s decision, which includes reaching carbon neutrality at all GM sites globally by the same timeframe, was disclosed by Chairman and CEO Mary Barra.
Barra has continuously pushed for an “all-electric future,” and her declaration builds on GM’s longstanding commitment to a future focused on electric cars (EVs).
GM’s Vision for Electric Vehicles
Barra highlighted the importance of tailpipe emissions, which make up 75% of GM’s carbon production, in a LinkedIn post. To lessen this effect, GM is moving quickly to switch to an all-electric lineup.
The business plans to invest $27 billion on EV technology over the next several years and launch 30 new battery-electric vehicles (BEVs) by 2025. For the first time, GM has made it clear that all light-duty cars, including pickups and SUVs, must be free of gas and diesel engines.
According to a Wall Street Journal analysis, GM is now largely dependent on gasoline and diesel vehicles, which account for 98% of its sales and all of its profit, despite its daring efforts toward an all-electric future.
This demonstrates the magnitude of the change GM must undergo in order to transition from internal combustion to electric vehicles. Heavy-duty commercial trucks are not included in GM’s phase-out plan, but the firm is making advancements in clean technologies for these vehicles.
In order to supply hydrogen fuel-cell technology, GM teamed up with Navistar International Corp. in 2021. The two companies are still working together to develop this technology with Honda.
Recall that in 2023, GM experienced supply chain interruptions that caused a number of EV model introductions to be postponed. Barra stated that the problems have since been fixed. In addition to newcomers like Rivian and Lucid, the company now hopes to compete with Tesla, the top EV manufacturer in the US.
Even though Tesla is still the market leader, GM’s Chevy Equinox is a more reasonably priced EV alternative, coming in around $30,000 after tax incentives. As GM expands its EV business, this affordability is viewed as a crucial tactic.
With many automakers, like Bentley and Nissan, pledging to move away from internal combustion engines (ICE) in the next ten years, GM’s ambitious strategy is in line with broader trends in the auto industry.
