Mary Barra of GM Upholds Support for Electric Vehicles

GM CEO Reaffirms Commitment to Electric Vehicles Despite Decreasing Demand

CEO of General Motors Co., Mary Barra, restated on Thursday that electric vehicles (EVs) remain a central focus for the Detroit automaker, despite a recent reduction in production due to decreasing demand.

Speaking at the Automotive News Congress industry conference in downtown Detroit, Barra emphasized that EVs continue to be the company’s “North Star.” Her renewed pledge to electrification comes in light of a recent boost in EV sales. Buyers and lessees are keen to make the most of the $7,500 federal tax credits, made available under the Inflation Reduction Act, before they expire at the end of the month. However, analysts predict an immediate dip in sales, followed by slower than anticipated growth once the deadline passes.

The uptake of EVs in the United States has been slow, with battery-powered vehicles accounting for approximately 8% of market share. This lackluster interest from drivers, coupled with fluctuations in greenhouse gas emissions policy under the Trump administration, has resulted in uncertainty within the U.S. EV industry.

In reflecting on these changing circumstances, Barra stated, “Up until a year ago, we were on a journey to be in a regulatory environment where we had to drive EV adoption much faster. With the (Inflation Reduction Act) going away, we’re still all going to learn where we’re at once that ends and we get through the pull-ahead volume.”

Despite these challenges, many auto industry executives remain optimistic about an all-electric future, according to Elaine Buckberg, a senior fellow at Harvard University’s Salata Institute for Climate and Sustainability. As a former GM chief economist who also participated in the conference, Buckberg suggested that companies leading in emerging industries often sustain their advantage over a long period. Consequently, she believes that the prospect of future market dominance will encourage U.S. automakers to continue their innovation efforts irrespective of government pressure.

Buckberg posits that a significant shift will occur once there is widespread availability of EVs capable of covering 400 miles between charges, a well-established fast-charging infrastructure, and more affordable models. With these conditions, “even skeptics lose their reason for not buying,” she asserted.