General Motors has no plans to follow the lead of Tesla in slashing prices for its electric vehicles, chief executive Mary Barra has revealed.
Soon after Tesla slashed prices for the popular Model 3 and Model Y by as much as 30 percent, Ford responded to these cuts by slashing the average price of the Mustang Mach-E by $4,500. A number of EV makers in China have also cut prices. However, many legacy carmakers are remaining steadfast with their current pricing strategies, including General Motors.
While recently speaking during GM’s fourth-quarter earnings call earlier this week, GM chief executive Mary Barra said the company is confident in its current pricing strategy.
“When we look at our strong product portfolio and the interest that we have at the prices that we’ve already announced, we feel that we’re well positioned,” Barra said, according to The Verge. “[Going into] the first month of the year, we’ve seen a very strong customer interest in our products… we think, right now, we’re priced where we need to be.”
General Motors will have nine all-electric models on sale by the end of 2023 and is aiming to have delivered over 400,000 by the middle of 2024.
Read: Tesla Slashes Up To $13k Off Prices In U.S. And Europe To Counter Sales Slowdown
Other automakers are adopting the same approach as GM. Speaking to The Verge, representatives from BMW, Mercedes-Benz, and Hyundai confirmed no changes were planned.
“Hyundai has not taken any specific actions in response to competitor pricing changes, but we constantly evaluate the entire marketplace to ensure our vehicles are priced competitively,” Hyundai spokesperson Miles Johnson noted.
Volkswagen Group chief executive Oliver Blume also recently told the Frankfurter Allgemeine Sonntagszeiting newspaper that his brands are not planning price reductions either.
“We have a clear pricing strategy and are focusing on reliability. We trust in the strength of our products and brands,” he confirmed.
