Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

GM's Barra accelerates 'all out pursuit of global EV leadership'

Stock MarketsNov 19, 2020 02:55PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: GM to invest $2 billion to build electric vehicles in Tennessee

By Ben Klayman and Joseph White

DETROIT (Reuters) - General Motors Co (N:GM) Chief Executive Mary Barra said the Detroit automaker is accelerating an "all out pursuit of global EV leadership," challenging electric vehicle leader Tesla Inc (O:TSLA) with increased spending and sped-up vehicle production targets.

Over time, GM plans to offer electric vehicles across its lineup, from below $30,000 to over $100,000, with a goal of "putting everyone in an electric vehicle," Barra told investors Thursday during a conference sponsored by Barclays (LON:BARC).

Barra said EVs could help GM expand sales in the United States by as much as 280,000 vehicles a year in coastal states where the company's brands are weak. "We want to be No. 1 in EVs in North America," Barra said.

GM plans to increase spending on electric and autonomous vehicles to $27 billion by 2023, up 35% from previous disclosed plans, she said. The automaker also plans to speed the launch of a dozen new electric models.

GM's ambitions to be the leading electric vehicle producer put it on a collision course with Tesla and German automaker Volkswagen AG (DE:VOWG_p), which last week outlined an $86-billion electric vehicle investment plan. GM and VW compete head to head in China.

GM shares rallied into positive territory after Barra outlined her EV strategy. Tesla shares were up 3% on Thursday, pushing the carmaker toward a $475-billion market capitalization that is almost eight times greater than GM's.

Some investors have pressed Barra to separate GM's electric vehicle operations from the automaker's profitable, legacy internal combustion business. Asked about a spinoff of GM's skateboard or battery operations, Barra said, "We don't think it has to be separated."

Instead, Barra emphasized the advantages she sees in integrating internal combustion and electric vehicle businesses, noting that EVs can share up to 70% of the components used in traditional vehicles.

GM will boost battery-making capacity at the plant it is building in northeast Ohio with South Korea's LG Chem (KS:051910) and will increase the number of plants in which it builds electric vehicles, Barra said.

Tesla's soaring market capitalization, and growing pressure from regulators to phase out carbon-emitting gasoline engines, has put pressure on established automakers to accelerate production of electric vehicles, even though for now those models promise less profit than current trucks and SUVs.

GM was criticized by Democrats and environmentalists last year when it sided with U.S. President Donald Trump in backing efforts to strip California from setting its own vehicle emissions rules and later on Trump's decision to cut Obama-era efficiency requirements.

GM confirmed it will speed up the rollout of new EVs, and will offer 30 models globally by 2025, expanding on a prior target of 20 electric models by 2023. Barra said GM wants to exceed its prior target of annual sales of 1 million EVs in the United States and China by 2025.

GM's pitch to investors focuses on the company's Ultium battery technology, which GM said will now offer electric driving range of up to 450 miles on a single charge, up from 400 previously stated.

The second generation of Ultium batteries, available mid-decade, should close most of the cost gap with gasoline engines, GM global product development chief Doug Parks said on a call with reporters.

GM also said it was creating an umbrella organization for its electric vehicle and digital marketing efforts called Ultifi.

GM's Barra accelerates 'all out pursuit of global EV leadership'

Related Articles

Facebook plans to change its name - The Verge
Facebook plans to change its name - The Verge By Reuters - Oct 19, 2021 4

(Reuters) - Social media giant Facebook Inc (NASDAQ:FB) is planning to rebrand itself with a new name next week to reflect its focus on building the metaverse, the Verge...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Tong Nguyen
Tong Nguyen Nov 19, 2020 4:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If GM or any EV wannabes are serious about EV, they must address supercharger network. If not, then forget it.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email