GM Lost $1.7 Billion from Electric Vehicles

GM Lost $1.7 Billion from Electric Vehicles

January 31, 2024

Over the past couple of years, automakers have tried to add electric vehicles to their lineups but are experiencing losses because of them. One example is General Motors (GM), recently announced that last year’s profits were down 14.6%.  

The Wall Street Journal reports, 

“General Motors GM 2.65% increase; green up pointing triangle provided Wall Street with a surprisingly bullish profit outlook for 2024, lifting the stock Tuesday after stumbles last year on electric vehicles and self-driving cars dented earnings. The Detroit automaker also said it plans to introduce some plug-in hybrid models to North America, a significant strategic shift after years of sidestepping this technology for the U.S. market. Dealers have been pressing GM to add hybrids, which many observers see as an important option for customers in between gas-powered cars and fully electric vehicles.”

What makes GM’s loss report so interesting is that they lost more money from their electric vehicle business than from a six-week worker strike. 

“A $1.1 billion loss from the United Auto Workers’ six-week strike last fall dragged GM’s full-year operating profit down 14.6% to $12.4 billion. A $1.7 billion loss on the EV business, as well as increased spending on its Cruise driverless-car program, also hurt earnings.”

This goes to show that despite the tax breaks and encouragement from the media, EVs cannot compete in the free market. Americans are not interested in cars that won’t charge in the cold and are overly expensive. It is time automakers return to what they know and make innovative combustion engine cars.