It looks like GM is taking the logical route to cost-cutting in developing EV vehicles and is taking a page from what Tesla’s been doing all along, modular platforms for its EV’s. According to Automotive News remarking on GM’s CEO Mary Barra’s speech to the Barclays 2017 Global Automotive Conference earlier today (Nov. 15, 2017) Barra stated that by 2023, GM will have 20 new EV models in its lineup thanks to the cost-sharing modular platform from its EV’s. Additionally, Barra claims a projected 300-mile range from its newest two EV offerings, both which should hit the market by 2019.
The very nature of the EV market, as hinted by Automotive News, is one where car manufacturers must play loss-leader in the beginning in order to be in the back of consumers minds when the time is right to cash in. Demand for EV vehicles, while small, is slowly starting to pick up thanks to the ubiquity of hybrid engines, ever restrictive CAFE restrictions, awareness of the harmful effects of exhaust gases in a fight against global warming and the success of startups like Tesla and BYD.
“We are working to provide desirable, obtainable and profitable vehicles that deliver a range of over 300 miles. There’s a lot of really creative things we’re doing to achieve that profitability point for that new platform.”
GM wasn’t very specific which markets they would be playing to but presumably, their strategy is on a global scale. Much of the growth in EV vehicles is coming from China. Reuters reported earlier this week that GM’s partnership with the country’s largest automaker, SAIC, has laid out goals to meet the growing demand for EV vehicles in their home market.
One of their most popular vehicles, the Baojun E100, sells for less than $6,000 after government incentives. I expect some of the battery technology and management lessons learned from doing business in the Chinese market to transfer over to their EV production and sales in the United States.
To ease the burden of having to find a charger in a world were gas still reigns, Mary Barra stated that she’ll work with public and private companies to make charging points open to more people than before.
GM certainly has the engineering and manpower to get these goals met. The question remains by 2023, the demand for electric-only vehicles will be there to meet this new lineup.
