GM's 2024 Chevrolet Equinox EV during a media launch event for the vehicle in Detroit on May 16, 2024.
Michael Wayland/CNBC
DETROIT – General Motors is cutting its expected sales and production of all-electric vehicles this year as adoption of electric vehicles in the United States is slower than expected.
GM Chief Financial Officer Paul Jacobson said the company now expects production of 200,000 to 250,000 electric vehicles this year, down from the previously announced range of 200,000 to 300,000. The company has continued to say it will produce according to demand, which is growing, but more slowly than many expected.
“So on the lower end of that, and I think it reflects the momentum we have in the business,” Jacobson said Tuesday during a Deutsche Bank investor event.
Jacobson said the company expects electric vehicle sales in the United States to account for about 8% of the industry. That's lower than many others, who expect sales to reach around 10% of industry sales in 2024.
GM still expects its electric vehicles to generate positive variable earnings by 200,000 units. He said this is still expected to occur during the second half of the year, in the fourth quarter.
The Detroit automaker is about to launch its newest electric vehicles, including its new entry-level Chevrolet Equinox electric vehicle. The vehicle will start at around $35,000 before any EV incentives, such as a federal credit of up to $7,500. GM also recently relaunched its Chevrolet Blazer EV after halting sales due to software issues.
The two new electric vehicles, which share GM's “Ultium” electric vehicle platform and technologies, are crucial to GM's electric vehicle growth.
The shift into electric vehicles comes after the company announced Tuesday morning that its board of directors had approved a new $6 billion stock buyback authorization, largely backed by sales of its vehicles. traditional gasoline-powered ones.
The new buyback authorization comes as an accelerated $10 billion share buyback program announced in November 2023 is expected to conclude later this month.
“We are very focused on the profitability of our [internal combustion engine] business, we are growing and improving the profitability of our electric vehicle business and deploying our capital efficiently. “This allows us to continue returning cash to shareholders,” GM Chief Financial Officer Paul Jacobson said in a statement.
CORRECTION: GM is cutting its EV production target to between 200,000 and 250,000 vehicles in 2024. A previous version of this article incorrectly indicated that range.
