GM Lowers EV Production Forecast, Commits $850 Million to Cruise
General Motors (GM) has cut its 2024 EV production forecast by up to 50,000 units, now targeting 200,000 to 250,000 vehicles, down from 300,000, due to lower-than-expected market demand. Despite this, GM expects positive variable profit on EVs by Q4 2024 and aims for mid-single-digit EV margins by 2025. GM is launching several new EV models, including the Blazer EV and Silverado EV, but has delayed some investments, such as a second plant for electric pickups, until 2025 to avoid overproduction and excess inventory.
GM will also invest $850 million in its self-driving subsidiary Cruise, which paused operations last fall after a pedestrian incident. Cruise has resumed supervised autonomous driving in Phoenix and Dallas and manual driving in Houston. This investment supports Cruise's operations and technology development. Additionally, GM announced a $6 billion share buyback program.
Ford Scraps Controversial EV Program, Opens Sales to All Dealers
Ford Motor Co. has ended its Model e electric vehicle certification program for dealers less than two years after its launch amid criticism. The program, aimed at boosting EV sales, faced backlash for complexity, high costs, and legal challenges. Ford has reopened EV sales to all dealers, simplifying requirements to encourage broader participation amidst the growing EV market. Critics argue the program hindered sales and burdened dealers unnecessarily, prompting Ford to pivot its strategy to better align with industry demands.
Beyond the SUV: Exploring the Future of Automotive Design
In the evolution of American automotive preferences, the minivan of the 1980s displaced the station wagon of the 1960s, while the 2000s saw the SUV rise, eclipsing the minivan. Economic shifts following the 1970s oil crises drove consumers toward smaller, more efficient Japanese imports. Now, attention turns to what will succeed the SUV, which currently dominates nearly 60% of the new vehicle market. Rising prices and stricter efficiency standards may challenge the SUV's reign, prompting consideration of new designs like the boxy 'Toaster' or a resurgence of van-like vehicles. Designs may also remix traditional car forms or integrate SUV features into other vehicle types, reflecting ongoing shifts in consumer preferences and technological advancements.