GM’s 2024 Chevrolet Equinox EV during a media launch event for the vehicle in Detroit, May 16, 2024.
Michael Wayland / CNBC
DETROIT – General Motors is trimming its expected sales and production of all-electric vehicles this year, as U.S. adoption of EVs occurs slower than expected.
GM Chief Financial Officer Paul Jacobson said the company now expects production of 200,000 to 250,000 EVs this year, down from a previously announced range of 200,000 to 300,000. The company has continued to say it will produce to demand, which is growing, but slower than many had expected.
“So at the lower end of that, and I think it reflects the momentum that we have in the business,” Jacobson said Tuesday during a Deutsche Bank investor event.
Jacobson said the company expects U.S. EV sales to be around 8% of the industry. That’s lower than many others, which expects sales to hit around 10% of industry sales in 2024.
GM still expects its EVs to be variable profit-positive at 200,000 units. He said this is still expected to occur during the second half of the year, in the fourth quarter.
The Detroit automaker is in the midst of launching its newest EVs, including its new entry-level Chevrolet Equinox EV. The vehicle will begin at around $35,000 before any EV incentives such as an up to $7,500 federal credit. GM also recently relaunched its Chevrolet Blazer EV following halting sales due to software issues.
The two new EVs, which share GM’s “Ultium” EV platform and technologies, are crucial for GM’s EV growth.
The change in EVs follows the company Tuesday morning announcing a new $6 billion stock repurchase authorization has been approved by its board, largely backed by sales of its traditional gas-powered vehicles.
The new buyback authorization comes as an accelerated $10 billion share repurchase program announced in November 2023 is expected to be completed by the end of this month.
“We are very focused on the profitability of our [internal combustion engine] business, we’re growing and improving the profitability of our EV business and deploying our capital efficiently. This allows us to continue returning cash to shareholders,” GM CFO Paul Jacobson said in a release.
CORRECTION: GM is trimming its EV production target to 200,000 to 250,000 vehicles in 2024. A prior version of this article misstated that range.