Welcome to the North American Subaru Impreza Owners Club Wednesday March 20, 2019
Home Forums WikiNASIOC Products Store Modifications Upgrade Garage
NASIOC
Go Back   NASIOC > NASIOC General > News & Rumors > Non-Subaru News & Rumors

Welcome to NASIOC - The world's largest online community for Subaru enthusiasts!
Welcome to the NASIOC.com Subaru forum.

You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, free of charge, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, so please join our community today!

If you have any problems with the registration process or your account login, please contact us.
* Registered users of the site do not see these ads. 
Reply
 
Thread Tools Display Modes
Old 02-08-2019, 06:40 AM   #1
AVANTI R5
Scooby Guru
 
Member#: 73805
Join Date: Nov 2004
Default GM doesn’t see being profitable selling electric cars until ‘early next decade’




Quote:
GM has long been suspected of selling its electric vehicles at a loss to get regulatory credits and now CEO Mary Barra confirmed that she doesn’t expect the American automaker’s electrification effort to be profitable until “early next decade.”

Last year, we reported on GM losing money on the Chevy Bolt EV without ZEV credits.

Similar reports also previously came out about the Chevy Volt and GM recently announced that it is ending the vehicle program at the end of this quarter.

When asked when she thinks GM’s electric vehicles will be profitable, CEO Mary Barra said during the company’s earnings conference call this week:

“I would say early next decade, but I wouldn’t put any more specificity on EV profitability than that.”

It virtually confirmed that the company’s current electric vehicle programs have not been profitable.

The CEO seems to link the EV profitability to GM’s upcoming next-generation electric platform:

“We’ve talked about the fact that with our next generation of development, we want to make sure we have obtainable, profitable, desirable, and with the appropriate range. And so that is the work that we’re doing.”

GM’s Cadillac recently unveiled images of the brand’s first EV, which is going to be built on GM’s new “BEV3” platform.

The platform is expected to arrive in 2021, which is in line with Barra’s “early next decade” timeline.

Electrek’s Take

I’m honestly worried about GM. No profitable EV for another two years? It makes it sound like they are years behind the competition.

Also, GM previously announced that they would launch 3 other electric vehicles based on the Bolt EV platform before the end of the decade and the switch to the next generation platform.

Does that mean that those are also going to be unprofitable and relatively low-volume programs like the Bolt EV?

While GM claims to be “all-in” on electric vehicles, there are definitely taking their time to put their cards on the table.
* Registered users of the site do not see these ads.
AVANTI R5 is offline   Reply With Quote
Sponsored Links
* Registered users of the site do not see these ads.
Old 02-08-2019, 11:50 AM   #2
dwf137
Scooby Specialist
 
Member#: 161333
Join Date: Oct 2007
Chapter/Region: NWIC
Location: Seattle
Vehicle:
'18 Golf R
'14 Outback

Default

innovation costs money. Whodathunk?
dwf137 is offline   Reply With Quote
Old 02-08-2019, 12:52 PM   #3
Scooby921
Merci Buckets
Moderator
 
Member#: 88606
Join Date: Jun 2005
Chapter/Region: MWSOC
Location: Michigan
Vehicle:
2016 Cayman GTS
Dark Blue Metallic

Default

I think most people look at Tesla and their BEV's and assume they make money. It's shocking that GM can't, yet Tesla can't make money either. Maybe some models are more profitable than others, but as a BEV company I think Tesla has been negative for the last decade. With perspective the GM situation isn't so odd. They have more leverage in production capacity, but they still have the same general innovation cost and piece-price fees when it comes to the motors and battery packs and inverters. They aren't building them in the millions, or even hundreds of thousands. Volume discounts on piece prices aren't there yet. Amortized costs on production equipment isn't gone yet.
Scooby921 is offline   Reply With Quote
Old 02-08-2019, 07:35 PM   #4
thill
Scooby Specialist
 
Member#: 377200
Join Date: Dec 2013
Location: North Pole
Vehicle:
17 Focus RS
Stealth Grey

Default

It will take a major price hike on gas (could be done via taxation which many politicians are proposing right now), but it's economics. Gas is cheap and combustion cars are cheap. With federal rebates expiring and being reduced EV's typically cost a lot more unless you buy used ones.

I'm really not in a hurry. At some point someone will make an EV that I really want at a price I can afford.
thill is offline   Reply With Quote
Old 02-08-2019, 09:58 PM   #5
Integra96
Scooby Specialist
 
Member#: 64196
Join Date: Jun 2004
Chapter/Region: RMIC
Vehicle:
2010 Family Sedan

Default

Next decade = 11 months away.
Integra96 is offline   Reply With Quote
Old 02-09-2019, 08:27 AM   #6
mhoward1
Scooby Guru
 
Member#: 9481
Join Date: Aug 2001
Chapter/Region: South East
Location: FFR Challenge #43
Vehicle:
1832 Steam Buggy
Wood

Default

Quote:
Originally Posted by Integra96 View Post
Next decade = 11 months away.
That’s what I was thinking
mhoward1 is online now   Reply With Quote
Old 02-09-2019, 11:06 AM   #7
shikataganai
Scooby Guru
 
Member#: 92634
Join Date: Aug 2005
Chapter/Region: RMIC
Default

Quote:
Originally Posted by Scooby921 View Post
I think most people look at Tesla and their BEV's and assume they make money. It's shocking that GM can't, yet Tesla can't make money either. Maybe some models are more profitable than others, but as a BEV company I think Tesla has been negative for the last decade.
https://www.theverge.com/2018/8/1/17...l-3-production

Quote:
The Model 3’s gross margins, a measure of the revenue that the company retains after costs associated with producing it, turned “slightly positive” in Q2, according to the company. That’s despite the fact that production was still ramping up and that Tesla had yet to ship any of the expensive All-Wheel Drive performance versions of the car. “This was a significant achievement in the ramp of Model 3,” the company concludes in a letter to investors released with the report.

Until recently, Tesla had been losing money on every Model 3 that it shipped. Tesla says that the Model 3’s gross margin “should grow significantly” to approximately 15 percent in the third quarter and 20 percent in fourth quarter, thanks to “continued reduction in manufacturing costs and to some extent an improving mix.” From here on out, CEO Elon said during a call with analysts Wednesday evening, “the goal is to be profitable and cash flow positive every quarter going forward.”
That the company hasn't been profitable doesn't necessarily mean producing the cars isn't, which is how I read your "as a BEV company" line. They've been building out massive amounts of production capacity and charging infrastructure, plus the R&D that lays the groundwork for the next decade.
shikataganai is offline   Reply With Quote
Old 02-09-2019, 01:36 PM   #8
godfather2112
Papi Chulo
Moderator
 
Member#: 53794
Join Date: Jan 2004
Chapter/Region: RMIC
Location: Boner kill city
Vehicle:
... 2017 BMW M2
2017 F-150

Default

Quote:
Originally Posted by thill View Post
It will take a major price hike on gas (could be done via taxation which many politicians are proposing right now), but it's economics. Gas is cheap and combustion cars are cheap. With federal rebates expiring and being reduced EV's typically cost a lot more unless you buy used ones.

I'm really not in a hurry. At some point someone will make an EV that I really want at a price I can afford.
That’s the same boat I’m in. I couldn’t care less about latest and greatest car tech. I currently think all the available EV cars are boring as **** to look at and stale as **** to drive. Yes, yes. I’ve drive the p100D and it is without a doubt bonkers to floor in a straight line. Besides that, meh.

Look, I’m all for reducing carbon footprint but when the cost to acquire said vehicle doesn’t make financial sense, I’m out for now. I just can justify handing over a 2 year old vehicle simply to go EV. Nor would it work for my needs also.
godfather2112 is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

All times are GMT -4. The time now is 07:51 AM.


Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Powered by Searchlight © 2019 Axivo Inc.
Copyright ©1999 - 2017, North American Subaru Impreza Owners Club, Inc.