GM says it will begin making money on its EV sales in 2025, a major milestone for the company as the industry continues to struggle with the transition to EVs.
EVs have been touted as an important element in efforts to address climate change, but making the transition has been fraught with issues. Range anxiety has been a major problem, with EV charging infrastructure holding preventing many consumers from making the switch, especially in rural environments. As demand has cooled, automakers have had to adjust their plans to reflect the changing market.
According to The New York Times, GM appears to be bucking that trend. The company plans to make money from its EV division in 2025, and CEO Marry Barra remains bullish on the transition.
“That is the plan we’re still executing,” she said.
As the outlet points out, if GM delivers on its prediction, it will be the only US automaker to turn a profit on EVs outside of Tesla.
GM’s position is in stark contrast to some of its biggest rivals, including Ford and Volkswagen. Ford recently announced it was scaling back its own EV ambitions, axing plans to build an all-electric three-row SUV. The company announced its plans, including the associated losses, in late August.
As a result of this decision, the company will take a special non-cash charge of about $400 million for the write-down of certain product-specific manufacturing assets for the previously planned all-electric three-row SUVs, which Ford will no longer produce. These actions may also result in additional expenses and cash expenditures of up to $1.5 billion and the company will reflect those in the quarter in which they are incurred, as a special item.
Similarly, Volkswagen delayed the launch of its ID.4 to the early 2030s and has scaled back its demand for battery cells.
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