GM remains committed to electrification despite regulatory changes

Jacobson stressed the importance of developing “reasonable” regulatory policies that meet consumer needs and maintain flexibility in global markets. “A lot of what we’re doing will continue regardless of how regulations change,” he said. This statement reflects GM’s proactive response to the changing regulatory environment while ensuring that the company remains focused on consumer preferences and market needs. Jacobson’s comments show that GM is not only ready to adapt to regulatory changes, but also committed to producing vehicles that resonate with customers.

In addition to the focus on electrification, Jacobson also talked about GM’s supply chain strategy, specifically its reliance on Chinese parts. He noted that GM uses “very small amounts” of Chinese parts in vehicles produced in North America, suggesting that any potential trade impacts from the new administration are “manageable.” This statement reinforces GM’s strong production structure, which is designed to mitigate the risks of global supply chain disruptions.

Jacobson detailed GM’s balanced production strategy, which includes manufacturing in both Mexico and the United States. He highlighted the company’s decision to partner with LG Energy Solution to produce batteries domestically, rather than importing low-cost battery technology. This strategic move not only supports American jobs, but also aligns with the administration’s goal of promoting domestic manufacturing. “We will continue to work with the administration because I think our goals in terms of American jobs are very aligned with the administration’s goals,” Jacobson said.

As part of its commitment to electrification, GM is on track to produce and sell 200,000 electric vehicles in North America this year. Jacobson said variable profit for the electric vehicle division, after fixed costs, is expected to be positive this quarter. The positive outlook reflects GM’s success in scaling electric vehicle production and meeting growing demand for sustainable transportation solutions. The company’s focus on delivering high-quality electric vehicles demonstrates its commitment to providing the best service and products to its customers.

In addition, Jacobson also gave an in-depth analysis of GM’s inventory management strategy, especially for internal combustion engine (ICE) vehicles. He expects that by the end of 2024, the company’s ICE inventory is expected to reach 50 to 60 days. However, he clarified that GM will not measure EV inventory in days because the company is focused on launching new models to increase brand awareness. Instead, the measurement of EV inventory will be based on the number of EVs available at each dealer, reflecting GM’s commitment to ensuring that customers have access to the latest EV products.

In summary, GM is moving forward with its electrification agenda with determination while navigating potential regulatory changes and trade impacts. Jacobson’s insights highlight the company’s strategic focus on producing vehicles that meet consumer demand, promoting domestic manufacturing, and maintaining a competitive advantage in global markets. As GM continues to innovate and expand its electric vehicle lineup, it remains committed to providing customers with exceptional products and services that align with the changing landscape of the automotive industry. The company’s commitment to sustainability and customer satisfaction positions it as a leader in the transition to a more electrified future.