GM lowers EV production targets amid slow demand, says EVs will show 'variable profit'
What were the original and revised production targets for GM's new EVs in 2024 as stated by CFO Paul Jacobson?
The original production target for GM's new EVs in 2024 was between 200,000 and 300,000 vehicles. However, due to slower-than-expected demand growth for EVs across the industry, CFO Paul Jacobson revised the target to between 200,000 and 250,000 vehicles.
How does GM define "variable profit" in the context of its electric vehicles?
General Motors (GM) defines "variable profit" in the context of its electric vehicles (EVs) as the revenue earned from selling the vehicle exceeding the direct cost of producing it. This calculation excludes corporate or "fixed" costs, measuring only the costs that go into the car and the revenue earned from the car directly. In other words, it is the profitability of a specific vehicle, disregarding the overall operational costs of the company. GM aims to achieve a positive variable profit in its EV business, which would indicate that the company is generating profit on each EV sold, considering only the variable costs associated with production and sales.
What specific month did Jacobson highlight as having strong EV sales, and how many units were sold?
In May, GM had strong EV sales, selling about 9,500 EVs in that month.