On the most recent GM quarterly earnings call, Mary Barra remarked:
[https://www.fool.com/earnings/call-transcripts/2024/01/30/general-motors-gm-q4-2023-earnings-call-transcript/](https://www.fool.com/earnings/call-transcripts/2024/01/30/general-motors-gm-q4-2023-earnings-call-transcript/)
General Motors (GM) Q4 2023 Earnings Call Transcript By Motley Fool Transcribing – Jan 30, 2024 at 1:30PM
>”…Our plan is to produce and wholesale 200,000 to 300,000 Ultium-based Chevrolet GMC, Cadillac, and BrightDrop EVs in North America this year, but we will be guided by customer demand. It’s true, the pace of EV growth has slowed, which has created some uncertainty.
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>”We will build to demand, and we are encouraged that many third-party forecasts have U.S. EV deliveries rising from about 7% of the industry in ’23 to at least 10% in 2024, which would mean another year of record EV sales. We believe our competitive position will improve throughout the year based on higher production of the Cadillac Lyriq, the GMC Hummer EV, the Chevrolet Blazer EV, and the Silverado EV work truck. We’re also excited to have the Chevrolet Equinox EV and the Silverado EV RST, the GMC Denali — the GMC Sierra EV Denali, and the Cadillac Escalade IQ arriving in showrooms over the course of the year.
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>”We are confident in the design and performance of these vehicles. For example, the Lyriq is driving growth at Cadillac. Its sales have increased sequentially every month since September, and January deliveries should be in line with December despite winter storms across the country. We also have more than 10,000 — or excuse me, 100,000 reservations and orders for EV pickups that we expect to fulfill in ’24 and ’25. However, if demand conditions change, we’ll take advantage of our manufacturing flexibility in Spring Hill and Ramos to build more ICE models and fewer EVs…”
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Ms. Barra speaks of EV demand as something that GM is readily able to meet, and as though the concern is that EV demand will be less than they have planned for. I get that EV demand has in some ways been disappointing in the US, but let’s also acknowledge that in some ways, and particularly over the last few years, GM has not been able to meet EV demand. For example, Lyriq sales were relatively low until recently in large part because GM was having trouble figuring out how to make batteries in volume. Blazer sales were low because GM had stopped selling the vehicle until they could work issues out. In general, GM’s sales (deliveries) of non-Bolt vehicles over the last year or two have been a terrible disappointment. If GM makes more of the good vehicles (now that they have finally belatedly worked out some of the production issues) and if GM decides to prices the vehicles such that they are competitive with Tesla, Hyundai, Kia and others, then I don’t know that sales will be extremely high, but I think they will be more robust than the EV-naysayers are presently predicting.
by melville48
25 Comments
Demand is created by the company offering the product. Empty question as far as I’m concerned.
Ev demand is there but everyone wants to make expensive luxury vehicles. I look forward to seeing how the equinox does and later on the new bolt.
The 2024 Kona has been selling incredibly well because it was decently affordable. I’ve seen 1 2024 get traded into carmax and it was sold within 4 days.
I think the slowing growth numbers are an excuse / crutch that GM is happy to grab onto to mask their battery issues this year while they get ramped up to where they should have been by the end of last year
Falling EV Demand = Legacy manufacturers aren’t building a compelling product to be sold by a legacy dealership network which doesn’t want to do so.
When GM starts playing a serious part of the EV market again since killing the Bolt then they can talk about demand being softer than expected. I’m driving a 2018 Chevy Volt and it’s still the best PHEV that GM has produced because they made a couple hundred thousand of them. They shouldn’t be talking about products that they can’t figure out how to get down to people to sell while cutting the one product they have in the category right as the category experiences rapid demand
How about they first work on the “good EVs” part?
The answer is no.
Mary led… To bankruptcy…
I do wonder about the demand bit. I think quite a few used bolts have hit the market in the last bit. With the batteries being replaced I suspect that a lot of people like myself just went with a used bolt rather than being a new EV.
>Ms. Barra speaks of EV demand as something that GM is readily able to meet
look up GM’s Ultium lineup for CHINA…. and their factory construction over there. look up the number of domestic market EVs GM has already made in China (GM-SAIC joint venture). compare that to what’s on the US radar over the next 2 years..
compare China’s ability to make EV batteries to the current state of US battery manufacturing. look up GM’s efforts in California and Texas to source domestic raw materials.
>Blazer sales were low because GM had stopped selling the vehicle until they could work issues out.
in China, it’s a Buick.. no software problems to speak of. no stop sale AFAIK.
#
Apr 26, 2023 at 8:27am ET
Buick Electra E5 Sees Strong Start In China With 8,000 Orders
[https://insideevs.com/news/664245/buick-electra-e5-strong-start-china-8000-orders/](https://insideevs.com/news/664245/buick-electra-e5-strong-start-china-8000-orders/)
>demand will be less than they have planned for.
demand could go up if more cars are eligible for tax credits.
tax credits are dependent on domestic materials. the % of required domestic materials goes up every year.
the US isn’t able to muster 50% in 2024.. going to be more in 8 months.
[https://home.treasury.gov/news/press-releases/jy1379](https://home.treasury.gov/news/press-releases/jy1379)
For 2023, the applicable percentage is 40 percent.
For 2024, the applicable percentage is 50 percent.
For 2025, the applicable percentage is 60 percent.
For 2026, the applicable percentage is 70 percent.
>competitive with Tesla, Hyundai, Kia and others,
they’re also going to need US battery materials.. they might call GM?
GM and Lithium Americas to Develop U.S.-Sourced Lithium Production through $650 Million Equity Investment and Supply Agreement
[https://news.gm.com/newsroom.detail.html/Pages/news/us/en/2023/jan/0131-lithium.html](https://news.gm.com/newsroom.detail.html/Pages/news/us/en/2023/jan/0131-lithium.html)
Yes they have about 150GWh of battery capacity that will go online in a few years. That’s 1.5 million vehicles with 100 kwh batteries.
Yes is the answer. As GM noted, issue is more that they have more capacity than sales for next couple years.
Once they get rolling, try to stop them!
The average American probably can’t afford a car more than about 30k
I think GM is far overestimating the demand for electric SUV’s.
Did you know that GM produced 16,000 EVs in the first quarter of this year? I’d be shocked if they sell 75,000 EVs this entire year.
They have both a demand and supply problem. Ultium is objectively the worst EV platform out there with stop sales so far on every car they’ve launched and underwhelming reviews around the board.
The factory that makes their battery cells in Lordstown is full of issues. Dealers are as reluctant as ever to sell EVs. And GM’s EVs are all crazy expensive at a time when interest rates are high and insurances rates are higher than ever.
Nobody wants a Lyriq, Blazer, Silverado, or any other GM EV at this point except the Bolt which they don’t sell anymore.
>Ms. Barra speaks of EV demand as something that GM is readily able to meet, and as though the concern is that EV demand will be less than they have planned for.
GM canceled their best selling EV in USA in history. Best selling after a battery fiasco that everyone was fully aware of. GM is not capable.
GM can only make cars. Tesla makes computers with wheels not cars.
General Motors can “absolutely” catch Tesla in U.S. sales of electric vehicles by 2025, CEO and Chair Mary Barra told CNBC on Wednesday.
[https://www.cnbc.com/2021/10/27/gm-can-absolutely-top-tesla-in-ev-sales-by-2025-says-ceo-mary-barra.html](https://www.cnbc.com/2021/10/27/gm-can-absolutely-top-tesla-in-ev-sales-by-2025-says-ceo-mary-barra.html)
Just saw the new GM EV (Blazer? Equinox?) for the first time on the road, and it’s a really nice looking car. If they can make that vehicle at a reasonable cost, they’ll sell a bunch. But they need to understand that the era of the average person flinging $60k at a car out of desperation is over. See also truck manufacturers
NO
America needs cheaper EV’s, so does Canada. The EU has them, but executives have brainwashed us North Americans into the idea that we need a massive truck or SUV to drive on our roads here. We need more cars like the Fiat EV, the Mini Cooper EV, bring back the Spark, etc.
I have my doubts on the reliability of GM EVs,
Hell no
Mary has been bullshitting about GMs ability to produce EVs in volume for a very long time.
ummm why would anyone expect evs from gm?