General Motors (GM) is the car manufacturer that gave us the Chevrolet Volt, the hybrid electric car that ended its production in 2019.GM is focusing on rising to the top of the electric car producers list. During a recent launch of 30 new models, the CEO, Mary Barra, revealed that they were ‘committed to fighting for electric vehicle market share until we are number one in North America.’ GM will be fighting for the crown, which currently belongs to Elon Musk’s Tesla Inc. Tesla rose to the top in 2018. After unveiling a string of electric vehicle models since 2012, Tesla gradually increased its sales massively, overtaking GM in 2018.
For the past decade, the race to the EV top seller has been between General Motors Chevrolet Volt and Toyota Prius. About 8 years ago, GM traded approximately 23000 Chevrolet Volts. Toyota traded only a half of this value.GM sales in that year represented about 18% of the total US electronic car market. In 2019, after unveiling a new model dubbed Model 3, Tesla continued to reign on the US EV market. Tesla’s sales increased in 2020, and GM will have to be overambitious to topple Tesla from the top. According to Barra, the company will achieve this by increasing the amount of money it invests in electric car development to $27 billion. The company also targets to sell approximately one million electric cars in 2025.
Analysts in the electric vehicle field fear that at the rate at which Tesla is making sales for EVs, GM will not beat it. “Right now, on pure electric in the US, Tesla is dominant,” stated David Whiston, an analyst at Morningstar. Another hurdle that GM will have to overcome is its traditional car and truck business. The company is the biggest manufacturer in the US for these traditional vehicles. It must act in a way that brings balance between the traditional and the electric vehicles, without neglecting the former. It is estimated that by 2030, electronic vehicles will make up to 20% of the world’s car market. This value will rise to about 80% by 2040 especially after Democrats win through Joe Biden.
Luke Gear, a senior technology analyst at IDTechEx, terms GM’s target of 1million vehicles as ‘stepping up the game.’ GM has an Ultium battery that enables the development of new models. The company has a battery company in Lordstown, Ohio, that is collaboration between GM and LG Chem, a chemical manufacturing company. Emmanuel Rosner, an analyst, estimates that GM will decrease the expenditure for battery cells to $100 per kilowatt-hour and eventually to $75 per kilowatt-hour by 2025. Currently, this value is at $145 per kilowatt-hour. This reduction is the main goal behind the GM-LG Chem joint venture. However, this reduction will still be higher than Tesla’s target of $50 per kilowatt-hour.https://atlanticfinancialmanagement.co.uk/