General Motor’s Executive Vice President of Global Product Development has revealed he believes the company will become the first automaker to turn a profit on electric vehicles.
Speaking to The Detroit Bureau, Mark Reuss acknowledged “We know the customers would like to drive electric cars but are unwilling to pay any more for them. That’s why we’re going to be the first company to sell electric vehicles that people can afford at a profit.”
Reuss declined to say when he believes electric vehicles will be profitable but a growing number of affordable models with an impressive range should help to increase their appeal. In particular, the Chevrolet Bolt starts at $37,495 before incentives and has an EPA-estimated range of 238 miles.
Economies of scale will play a big role in making EVs profitable and General Motors has already announced plans to offer ten different electric vehicles in China by 2020. The new models should help to drive down battery prices and Reuss noted “We own our own battery chemistry. We integrate the pack and we have our own electric motors. We own all that design.”
Last but not least, the executive revealed we can expect future electric vehicles to be lighter because the reduced mass lowers the amount of power that is required to get them moving.
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