WionDrive News Desk 
General Motors anticipates substantial reductions in electric vehicle production costs by 2024, aiming to enhance profitability as it scales up the production of higher-margin models. GM Chief Financial Officer Paul Jacobson shared these insights at a recent Barclays event, emphasising the company’s commitment to achieving mid single-digit earnings before interest and taxes margin targets by 2025.
Strategic Shift and Investor Reassurance
These comments follow GM’s recent strategic moves to reassure investors, including the announcement of USD 10 billion in new share buybacks, a 33% dividend increase, and a commitment to significantly reduce spending at its robotaxi unit, Cruise.
Divergent Path from Tesla
Jacobson made it clear that GM’s objective is not to replicate Tesla’s success but rather to be the best version of GM. This declaration aligns with GM’s overarching goal of discontinuing the sale of gas-powered vehicles by 2035.
EV Production Plans and Capacity Targets
GM, which recently abandoned its goal of producing 400,000 EVs from 2022 through mid-2024, now projects a meaningful increase in EV production in the coming year. The company aims to achieve 1 million units of EV capacity by 2025.
Cost Reduction Strategies
Jacobson outlined GM’s plans to reduce fixed costs on EVs by approximately USD 20,000 per vehicle in 2024 compared to 2023. These cost-cutting measures extend to battery production tax credits and leverage greenhouse gas reduction benefits in GM’s EV profit calculations.
Focus on Profitable EV Models
GM anticipates an increased production of higher-profit EVs in 2024, with models like the Hummer and the Blazer EV taking centre stage. In contrast, the company plans to produce significantly fewer units of the Bolt in 2024 as it temporarily shuts down the line to reintroduce the next-generation Bolt.
Battery Cost Reduction and Localisation Efforts
Addressing one of the key components of EV manufacturing, GM expects a substantial reduction in battery costs. This includes efforts to minimise reliance on more expensive imported battery cells. GM, in partnership with LG Energy Solution, is actively constructing three U.S. battery cell plants, with plans to bring lower-cost batteries online in the coming years.
Future Battery Partnership with Samsung SDI
GM’s partnership with LG Energy Solution is set to expand with a new joint venture battery plant with Samsung SDI. Jacobson highlighted that this collaboration is expected to deliver even lower-cost batteries in 2026 and beyond.
