In a significant milestone for the automaker, General Motors (GM) announced that its electric vehicle (EV) lineup became “variable profit positive” in the fourth quarter of 2024. This means that the revenue from GM’s EV sales exceeded the direct costs of labor and materials required to manufacture them.
This achievement reflects GM’s successful EV strategy, which included the introduction of new models like the Chevrolet Equinox EV and Blazer EV in 2024, the company says. GM reported a 9% increase in full-year revenue, attributing part of this growth to its expanding EV portfolio.
It’s important to note, however, that “variable profit positive” does not account for significant investments such as retooling factories and establishing new assembly lines. Despite these substantial upfront costs, GM’s ability to cover production expenses through sales revenue marks a pivotal step toward overall profitability in its EV division.
Looking ahead, GM plans to further enhance its EV offerings. The Cadillac brand’s EV lineup is set to expand with models like the Optiq and Vistiq, while Chevrolet is preparing to reintroduce the Bolt nameplate as a new affordable EV. The company’s focus will be on maintaining sales momentum and managing the successful launch of these new models in an increasingly competitive EV market.
This development, the company says, underscores GM’s commitment to electrification and its progress in making EV production financially sustainable. As the company continues to innovate and scale its EV operations, it aims to solidify its position in the rapidly evolving automotive landscape.
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