Common Motors (GM) introduced right this moment that it’s going to make investments almost $1 billion in 4 US services to provide V-8 engines and EV elements. Regardless of GM promoting it’s going “all in” on electrical automobiles, lower than 10% of the funding goes towards EV growth.
GM Invests $854M in V-8 engines, snubbing electrical automobiles
GM’s CEO Mary Barra defined in September, “we need to present EVs for everybody,” as the corporate dedicated to an all-electric future.
The automaker has spent a lot of the final yr selling its upcoming electrical car lineup, which features a Chevy Blazer EV, Chevy Silverado EV, and Chevy Equinox EV, to call a couple of. The Bolt EV and EUV make up the overwhelming majority of GM’s EV gross sales proper now, however costlier fashions just like the Cadillac Lyriq and GMC Hummer are starting to realize momentum.
Though GM claims the Bolt was the “#1 mainstream EV sequence in Q3 and This fall,” with deliveries climbing over 50% YOY, whole electrical car gross sales nonetheless amounted to lower than 2%, whereas many firms are already reaching double-digit (or 100%) EV gross sales share.
To make issues worse, the corporate introduced right this moment it’s investing $918 million in 4 of its services for “V-8 engine manufacturing, EV elements.” The EV elements half contains of a mere $64 million, lower than 10%, going towards two of its services.
Its Rochester, NY plant will obtain $56 million to construct battery cooling packs, and the opposite $8 million is to provide a casting growth cell for future EV growth at its Defiance, OH facility, in accordance with the press launch.
Electrek’s Take
GM is sending combined messages right here. Are they all-in on EVs, or is it simply speak? As a result of V-8 engines gained’t assist GM promote extra electrical automobiles and most actually is not going to assist them hit its aim of eliminating tailpipe emissions from its automobiles by 2035.
Consider, this is similar GM that spent years hyping up an electrical Corvette (that even President Biden couldn’t cease speaking about) solely to launch a hybrid E-Ray Corvette final week, fitted with a V-8, and about the identical quantity of vitality storage as two normal 12V lead acid batteries.
On prime of this, you’ll be able to solely drive in all-electric mode for speeds as much as 45 mph or when the throttle crosses a sure threshold.
To be truthful, GM is investing over $35 billion via 2025 in electrical automobiles and is transferring faster than most automakers. Nevertheless, they is probably not transferring as rapidly as they declare.
The Chevy Bolt remains to be an ideal automotive, nonetheless, profitable Electrek’s Automotive of the Yr in 2022 and promoting impressively properly after a recall derailed its momentum.
If GM’s Mary Barra believes they will beat Tesla, they might want to begin by performing quick. Investing virtually $1 billion into V-8 engines is the solely incorrect path. GM is already constructing V-8s. There must be no have to make any extra at this level.
The long run is absolutely electrical. GM says they’re embracing it, however are they? Hopefully, with a couple of high-profile EV releases this yr and momentum constructed up from final yr, the corporate can begin placing some numbers up. What do you guys suppose? Go away us your ideas within the feedback.
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