Worth being on the radar. Unsure when to buy. I want to see what the spring holds in store in the markets.
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I don’t see much to crow about.
GM CFO Paul Jacobson told Yahoo Finance on Tuesday the company is eyeing $2 billion to $4 billion of additional improvements in its EV profitability in 2025.
In other words, GM is losing less money on EVs.
This comes as the company is finally gaining traction in its electric vehicle business after years of investment, due to some cost rationalization and assistance from government tax credits.
Wait a minute I thought subsidies were BAD. That’s why we erected a 100% tariff barrier upon well made Chinese EVs.
For 2024, GM said it will produce and wholesale 200,000 EVs. Jacobson reaffirmed a target of hitting “positive variable profits” for the EV division this year.
In the media call, Jacobson elaborated on why variable profit was so important. “Variable profit is a really important step on the journey to profitability. It means you reached an inflection point,” he said, where scaling up sales starts to eat into high fixed costs. “As we scale, our EBIT losses start to come down,” he added.
OK confirmation GM is still losing money on EVs.
GM claims that it will change in 2026 with the new Chevy Bolt.
- The model will be about as inexpensive as the 2023 model, while also being profitable for GM.
The earlier Bolt sold fairly well but was a money loser.
Speaking to investors at GM’s quarterly reporting, GM head Mary Barra said point black that she doesn’t expect electric cars to start being profitable for GM until the end of the next decade.
Which is why she killed the Bolt. Advances in batteries & manufacturing of batteries changed the equation. So she brought the Bolt back.
Ms Barra doesn’t seem to be on top of battery technology and gave the impression of erratic decision making. It does not inspire confidence in me about GM prospects.
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IMO, she seems to be well aware of what is becoming available rather than what might becoming available. In other words, she is living in the “real world” rather than someone else’s “dream world”. Which is why she was willing to restart the Bolt–because it would be something they could actually build and sell in the next 1-3 yrs.
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Can anyone forecast when the next GM bailout will occur?
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Can anyone forecast when the next GM bailout will occur?
Reportedly, Stellantis is now attempting a “TBTF” gambit in the EU, threatening to stop making ICE cars, if the EU governments back off if their EV mandate, lay everyone off, and hurt the EU economies, a lot.
Steve
