General Motors is embarking on an ambitious move to electrification and some wonder if the automaker will see sales declines in certain segments of the market.
GM plans to have an all-electric light-vehicle lineup by 2035 and by the middle of this decade, will be selling three electric pickup trucks, at least two electric SUVs, and a number of electric crossovers. GM has committed $35 billion to its EV and autonomous vehicle transition through 2025.
Speaking with Auto News, GM North America president Steve Carlisle expressed confidence that the automaker won’t risk ceding share in key segments such as full-size pickup trucks and SUVs, despite the EV transition.
“I want to be in the top one or two positions in the segments that I’m competing in,” he said. “So what’s that number and at what price and what margin stock. You’ve got to look at all that together.”
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One way that GM will try to retain its share of the market is by selling certain models with both all-electric powertrains while also offering customers the choice of ICE variants. For example, electric versions of the Chevrolet Silverado and GMC Sierra pickup trucks will launch in 2023 while an electric Cadillac will land in 2024. Crucially, these models will be sold alongside their gasoline-powered siblings well into the future.
“They’re aggressive down this path, but there are still some gas-powered vehicles to work with,” principal analyst at HIS Markit Stephanie Brinley told Auto News. “I don’t know how GM will be able to actually make this transition without seeing at some point a bit of a volume drop that might be recovered when EVs are stronger.”
Other analysts suggest that GM could initially lose volume if it doesn’t offer gasoline-powered alternatives of some models.
“Depending on how aggressive they go with this…it appears at least to some extent that they are willing to sacrifice the near-term [volume] for the long-term gain,” added president of global forecasting at LMC Automotive Jeff Schuster.
As General Motors moves towards an all-electric future, it will also transform its manufacturing footprint. The brand’s Orion assembly site is the only one currently building electric vehicles but Ultium-powered EVs will soon be built in Detroit, Tennessee, Mexico, and Ontario, Canada.