General Motors Navigates Electric Transition amid Investor Concerns

General Motors CEO Mary Barra addressed shareholder concerns about electric vehicle demand and gasoline truck peak demand. At an investor day in Tennessee, Barra reassured that profit margins on internal combustion engine vehicles haven't peaked and EV sales are increasing. Concerns about China's restructuring and Cruise operations were discussed.

General Motors CEO Mary Barra aimed to calm shareholder concerns regarding sluggish demand for electric vehicles and the anticipated peak demand for gasoline-powered trucks. Speaking at an investor day event in Spring Hill, Tennessee, Barra emphasized that profit margins for traditional internal combustion engine vehicles remain robust, while the company's electric vehicle sales are on the rise, with 2025 profits projected to match those of 2024.

Addressing investor queries about General Motors' restructuring efforts in China and updates on its autonomous vehicle division, Cruise, Barra highlighted inventory reduction strategies and improved sales performance in the Chinese market. Cruise has restarted supervised driving in select cities after a previous incident. GM CFO Paul Jacobson projected operational losses for Cruise to be no more than $2 billion by 2025.

The slower-than-expected transition to electric vehicles has prompted adjustments in plans for several automakers, including GM and Ford. GM's focus has shifted to stability rather than rapid growth, with efforts to reduce costs per vehicle through fewer parts. A partnership with Hyundai aims to leverage shared strengths to further slash costs and expedite the release of diverse technologies.

(With inputs from agencies.)