GM Reassures Investors Amid Slower EV Transition, Promises Strong Profits for ICE Models

General Motors plans to reassure investors that there's no need to panic over slowing demand for electric vehicles. Instead of aggressive growth, GM aims for stability and improved profits by 2025. The company will highlight the strength of its internal-combustion engine (ICE) vehicles and plans to refresh eight SUV models by 2025, even as it grapples with competition from Chinese automakers and the need to reduce EV costs.

General Motors will reassure investors next Tuesday that there is no need to panic about decelerating demand for electric vehicles and could even improve its profits in 2025, according to two people familiar with the plans. The message at the company's investor day is a dramatic contrast from the one GM CEO Mary Barra laid out at the same event in 2021, when she highlighted ambitious goals that included doubling revenue to about $280 billion by 2030, fueled in part by its autonomous unit Cruise and expected EV sales growth.

However, the slower-than-anticipated EV transition has caused many automakers to adjust plans. GM's messaging is expected to focus less on aggressive growth and more on stability. Rory Harvey, GM's president of global markets, emphasized a strong third quarter, indicating a positive platform leading into investor day.

At the event, executives will emphasize that profit margins have not topped out with internal-combustion engine (ICE) vehicles and EV profits are closer than investors think. GM will tout the launch of eight refreshed SUV models by 2025 and will reduce its cash on hand target by $2 billion to build on its $6 billion stock buyback program.

(With inputs from agencies.)