Beautiful Virgin Islands

Tuesday, Jul 15, 2025

GM CEO Barra says electric vehicles to be profitable by 2025

GM CEO Barra says electric vehicles to be profitable by 2025

General Motors says it expects its portfolio of electric vehicles to turn a profit in North America by 2025 as it boosts battery and assembly plant capacity to build over 1 million EVs per year.
CEO Mary Barra used the pledge to kick off the company’s investor day event Thursday in New York.

The profit figure includes vehicle sales revenue, benefits from emissions tax credits, and revenue from software and parts sales, she said.

Barra said the company’s EV portfolio appeals to a broader range of customers than the competition, in a lineup that includes a small SUV for around $30,000, plus a luxury SUV, pickup trucks, and Hummer SUVs in the next two years.

The Detroit automaker has a goal of selling only electric passenger vehicles by 2035.

GM is sticking by a pledge made by Barra to sell more EVs in the US than market leader Tesla by the middle of the decade.

“Our commitment is to lead the industry,” Chief Financial Officer Paul Jacobson told reporters ahead on the investor day event. “We believe that with the infrastructure that we put in place and the vehicles that you’ll see today, we’ll be able to get there.”

The 2025 profit prediction is on a pretax basis that includes the capital costs of building battery factories and converting internal combustion plants to electric vehicles.

Jacobson said it will take time for individual electric vehicles to get to “low- to mid-single digit” profit margins in 2025 as costs are spread over more vehicles.

EV profit margins will go higher once clean energy tax credits from the federal Inflation Reduction Act are applied, Jacobson said.

GM customers, he said, should be able to get half the $7,500 federal EV tax credit next year, reaching the full credit by mid-decade. To get the credits, EVs and batteries must be built in North America, with battery minerals sourced on the continent.

Despite economic volatility and the possibility of a downturn, GM appeared more confident in this year’s financial results, saying Thursday it expects full-year pretax income to be $13.5 billion to $14.5 billion. That’s within the previous guidance range of $13 billion to $15 billion.

GM also said its Brightdrop commercial vehicle unit, which is making electric vans and carts, will contribute over $1 billion of revenue next year.

Shares of GM rose slightly Thursday as the broader markets declined.

The company says its modular Ultium EV architecture is flexible enough to allow multiple battery chemistries and cell sizes, and it can handle multiple vehicles. That’s one reason the company says the next two years put it on a path to double revenue by 2030.

Doug Parks, product development chief, said EVs are much simpler to build than internal combustion vehicles. For example, the Chevrolet Silverado EV has
45 percent fewer parts than its combustion equivalent, he said.

As for the new vehicles, GM will roll out an all-electric version of the Chevrolet Corvette next year, President Mark Reuss said.

“This will again set the standard of the world for performance,” he said.

Reuss gave glimpses of other new or revamped GM vehicles that are coming in the next two years. New internal combustion vehicles will be based on the existing underpinnings, saving costs, yet allowing the company to do significant upgrades, he said.

Among the revamped or new entries next year are the Chevrolet Traverse three-row SUV, as well as a new Buick SUV, and a revamped Chevrolet Trax small SUV starting around $19,000.

In 2024, GM will redo the three-row GMC Acadia SUV, making it more truck-like, Reuss said. Then it will revamp the internal combustion version of the Chevy Equinox small SUV in the biggest market segment in the world.

For electric vehicles next year, GM will revive the Buick Electra name for a new SUV that will go on sale first in China, then in the US Then comes the Cruise Origin, a multi-passenger vehicle built for the company’s ride-hailing service, and a Cadillac compact SUV.

Among the 2024 EVs is the GMC Sierra full-size pickup., a full-size Cadillac SUV, and full-size Buick and Chevrolet electric cars mainly for China.

Reuss also said GM is revamping the way customers buy electric vehicles, giving them the option of fully purchasing online or at the dealership and saving the company $2,000 per vehicle.

Rather than dealers holding huge inventories, they would keep fewer vehicles on lots. When a customer orders an EV, it would come from three US distribution centers, two in California and one in George. They would stock vehicles with popular equipment combinations and allow deliveries in as little as four days, Reuss said.

The system would automate a lot of financing and insurance costs. The $2,000 savings would go to GM.

Reuss also took a shot at US electric vehicle sales leader Tesla, telling analysts that more than 11,000 Tesla owners had vehicles serviced at a GM dealership.

He said the dealer network is a big competitive advantage.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
×