Auto manufacturer General Motors told investors profit margins on ICE vehicles have not yet peaked. EV sales are still ramping up but the Ultium battery brand is being dropped.
CEO Mary Barra said 2025 profits would remain steady. The slower-than-anticipated EV transition has caused many automakers to adjust expansion plans, including GM and others such as Ford, she told an investors’ day on 8 October.
GM’s messaging focused on stability and less on aggressive growth. “We don’t need to create a skunkworks to create affordable electric vehicles,” Reuss said. She highlighted how GM has brought down costs on its EVs through reducing the number of parts per vehicle, among other things.
GM CFO Paul Jacobson said operating losses on EVs should narrow by $2 billion to $4 billion. GM received about $800 million in manufacturing credits from the Inflation Reduction Act this year and it should grow from there. The company expects to reduce battery pack costs by around $60/kWh in 2024, he said in his presentation.
Kurt Kelty, head of battery cells, said GM will no longer use the Ultium name on its batteries. It will be more flexible with battery chemistry and configuration, he said. While moving away from the Ultium name, GM will still use the batteries. It is also planning a new battery cell development centre at its technical centre in Warren, Michigan. It expects to begin manufacturing in 2027. It could reduce timeframe to launch new battery technology by up to a year, he said.
Photo: Ultium Cells, Warren, Ohio. Ultium.
