- According to Anderson, GM’s decision to sell its stake in the battery plant aligns with challenges in the EV market.
- GM claims that its EV profitability is rapidly improving, attributing some success to its strategic decision to build battery cells in the U.S. in partnership with LG Energy Solution.
- Watch the video above to hear about the ongoing situation unfolding in Delta Township.
(The following is a transcription of the full broadcast story)
What role does the demand for EVs play in GM's decision to sell their stake in the battery plant?
I asked that question to Patrick Anderson, the Principal and CEO of Anderson Economic Group. He has decades of experience consulting the economic side of the auto Industry.
“General Motors, like Ford, Like Mercedes Benz, like almost every manufacturer, is dealing with the fact that consumers have been much more reluctant to buy electric vehicles.” He said.
Anderson says they’ve been looking at the EV trends for years and the findings are falling short for big automakers.
“We've been saying for three years three years since 2021 in the fall that the likely demand for electric vehicles was substantially less than this 25% of the market, even 50% of the market that was in some of the production plans.” He said.
In a statement detailing the announcement... GM noted that the company's E-V efforts will continue.
"Our EV profitability is rapidly improving thanks in part to our strategic decision to build battery cells in the U.S. with LG Energy Solution. It will be years before some of our competitors approach this level of performance." Said Paul Jacobson, GM executive vice president and CFO.
While Anderson says the market might be smaller than originally proposed he says there’ll still be a market for E-Vs.
“We are going to be selling electric vehicles we’re selling them now. I'm driving one” Said Anderson.
We'll continue to follow new developments regarding the jobs and economic effects of this battery plant as the projected early 2025 opening comes closer.
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