GM EV profitability aim from H2 2024

General Motors expects to see profitability for its EV products from the second half of 2024.

That’s according to statements made by GM chief financial officer Paul Jacobson on November 30 during the Barclays 2023 Global Automotive and Mobility Conference, says GM Authority.

It says Jacobson addressed several aspects of GM’s EV business, including scale, an influx of higher-priced products, lower battery materials costs, and more efficient production, indicating some challenges have impacted GM’s goal of reaching a 400,000-unit EV production target in North America.

GM expects to have a million units of capacity by 2025.

Jacobson says GM’s EV profitability plan includes new EV parts and accessories, as well as the company’s digital and software-enabled services, and greenhouse gas benefits.

He reckons cost per-unit will be about US$20,000 lower in 2024 and is expected to drop another US$5000 in 2025.

Some of the improvement will also come from a higher mix of higher-profit vehicles like the GMC Hummer EV and Chevy Blazer EV, while models like the previous-generation Bolt are discontinued with the next-gen Bolt riding on the lower-cost Ultium LFP program.

Battery costs are also expected to improve, with GM forecasting a US$4000 per vehicle cost improvement from 2023 to 2024, the lower costs including streamlined production and cheaper raw materials.