GM will boost its global electric vehicle sector with a $35 billion investment. By 2025, they expect to boost their EV presence in the industry. As people spoke on the matter, GM is expected to increase 30% jump as they pursue the EV road.
As part of the plan to push the Electric vehicle plan, two battery plants are to be set up in the US. Earlier they had a $20 billion plan, but now it increased to $35 billion.
General Motors is only of those companies hit because of chip shortage and other raw materials. This year they had to shut down multiple times, and it is evident that the company will have to invest more than anticipated.
Interestingly the announcement came after Ford announced its increased spending by $30 billion.
Furthermore, GM’s announcement includes shifting its entire Lincoln luxury brand to electric. Though it seems like a huge bet, most automakers have been increasing their investment. Recently Tesla announced their 1$1 billion investment in battery raw materials.
Additionally, the details about the location of these plants and other investment details are no revealed by GM. Further GM is going to closely work with the Washington government.
The Senate has advanced legislation for EVs by boosting tax credits. This will enable manufacturers to set up battery plants at a faster rate. The current tax credit is $7,500, which will increase to $12,500.
The electric vehicle’s presence in the US was only 2% last year. However, with Biden’s push towards electric vehicle and battery production domestically. Also, major carmakers are launching their latest electric vehicle models. Buyers are showing interest in them.
Jacobson said, “The Bolts have done well for us. This is really no-regret capital. We know that we will need those battery plants as we further our goals.”. This is in reference to the new Chevrolet Bolt version.
Also, GM plans to roll out 30 EV models by 2025, and 20 EV models by 2023. They plan to have at least 1 million EV sales annually by 2025.
This year’s first-half pretax earnings increased from $5.5 billion to earnings in-between $8.5 billion to $9.5 billion. Also, GM is working on hydrogen technology in partnership with Honda.
Furthermore, GM Chief Executive Mary Barra is going to meet the U.S. House Speaker Nancy Pelosi and other related people. They are going to speak on EVs and vehicle emissions. It includes the democrats, U.S. Representative Richard Neal, Frank Pallone, Representatives Dan Kildee, and Debbie Dingell.