General Motors CEO Mary Barra told CNBC on Monday that GM won’t have the production capacity to build a million electric vehicles by the end of next yearwhich was the previous goal.
The president also added that it was customer demand will determine how quickly a company can reach one million in annual sales electric vehicles. Meanwhile, demand for electric vehicles has not materialized as quickly as many companies, such as GM, had previously expected.
“We won’t get to a million just because the market isn’t growing, but we will get there,” Barra said Monday during CNBC’s virtual CEO Council event. “We’re going to be customer-driven.”
According to CNBC, a GM spokesman said the company’s goal was production capacity, but the question was about actually producing 1 million electric vehicles in 2025. Barra, however, did not specify whether she meant production or capacity. According to a GM spokesman Currently, electric vehicle plans will be flexible to meet demand.
Slowing demand will hit GM
Barry said in December that achieving a goal of an all-electric fleet by 2035 would depend on consumer acceptance. Meanwhile, the slowdown in growth could be a painful blow to GM. The company recently struggled with EV battery production problems and the opening of an electric pickup truck plant in suburban Detroit has already been delayed.
In addition, the automaker is in the process of ramping up production of its mid-size electric SUV Chevrolet Blazer and a smaller model Equinoxwhich the company hopes will boost sales. However, a slowdown in demand could scupper those plans.
