According to the Institute for Energy Research, Mary Barra, CEO of General Motors (GM), recently announced that the company will not reach its target of producing one million electric vehicles (EVs) by the end of 2025. This highlights the challenges GM faces in increasing EV production, mainly because the market is not growing as quickly as expected. Early EV adopters have already bought their vehicles, and many other consumers are still hesitant due to high costs and range anxiety - the lack of charging stations.
Despite efforts like President Biden’s Infrastructure Bill and Inflation Reduction Act, there has been little progress in building EVs and developing charging infrastructure.
Barra emphasized that for GM to meet its long-term goals, like having an all-electric fleet by 2035, consumer acceptance is essential.
GM reported a 1.5% drop in total U.S. vehicle sales in the first quarter and has lowered its 2024 EV production forecast from 300,000 to 250,000 units.
Similarly, Ford Motor Company is changing its EV strategy by focusing more on hybrids and cutting costs. Despite efforts to reduce EV production costs, Ford expects significant losses in its EV and software division this year.
These examples show that politicians' lofty goals don’t always pan out, which can negatively impact the local economy. Without proper market support and infrastructure, such ambitious targets can lead to setbacks and financial difficulties for companies and their employees.
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