June 11 (UPI) — A lack of consumer enthusiasm for electric vehicles has caused General Motors Corp. officials to lower the automaker’s production of EVs.
GM officials are reducing the automaker’s EV production target by as much as 100,000 vehicles for 2024.
The new production target is between 200,000 and 250,000 EVs, which is down from between 200,000 and 300,000 for the year, GM CFO Paul Jacobson announced during the Deutsche Bank Global Automotive Industry Conference on Tuesday.
Jacobson said GM can generate a profit on its EVs if the automaker’s production target is in the low 200,000s.
He also said GM plans an $850 million investment in self-driving subsidiary Cruise to relaunch the brand.
GM will produce EVs to match market demand, which Jacobson said is smaller than anticipated and growing at a slower pace than forecast.
GM sold more than 9,500 EVs in May and a total of 16,425 in the North American market for the year’s first quarter, which represents 2.8% of GM’s new-car sales for the quarter.
GM is providing incentives for car buyers to improve sales of its EVs.
The automaker is offering up to $7,500 in rebates for particular models, such as the Cadillac Lyriq Electric, and financing deals to spur consumer demand.