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GM To Enhance Expenditure On Electric And Autonomous Vehicles By 30%


06/17/2021


GM To Enhance Expenditure On Electric And Autonomous Vehicles By 30%
United States based auto major General Motors Co plans to increase its spending globally on electric and autonomous vehicles through 2025. The company will spend 30 per cent more on these compared to what it had forecast most recently which will be about $35 billion, said reports quoting sources with knowledge of the matter.
 
Two additional battery plants in the United States and pushing ahead some of its EV investments are among the spending plans of the number 1 auto companies of the US, said the reports quoting unnamed sources. In its latest forecast made in November last year, the company had announced an increase in its planned spending for electric and autonomous vehicles from $20 billion which the company had previously announced in March prior to the entire auto industry being shut down because of the Covid-19 pandemic.
 
The reports however carried no comments from the Detroit based company.
 
This anticipated announcement by the company of increased spending was preceded by a similar announcement less than a month ago by its rival Ford Motor Co in which the company had increased its planned expenditure for EVs by more than a third by 2030 by more than $30 billion.
 
This means that the top two auto makers of the US will spend a combined $65 billion while EV leader Tesla Inc and startups including Lucid and Rivian have also committed to an increased spending for EV production which also means that some of the auto companies such as Lordstown Motors Corp will also have to try and match the investments by raising more funds.
 
It is critical for GM Chief Executive Mary Barra to closely work with the new Biden administration to benefit from the proposed $174 billion to boost EVs and charging as exposed by US President Joe Biden, as a part of his infrastructure plan which includes a $100 billion as rebates in new EV purchases. The ability of GM to benefit from the current $7,500 federal EV tax credit has already expired.
 
Even while sparring over vehicle emissions rules with Democrats, GM said last week that it supported the overall emissions reductions in California's 2019 deal with other major automakers. The company had also sought more flexibility to hit carbon reduction target between now and 2026.
 
Citing comments by GM President Mark Reuss, the Associated Press reported on Monday that GM plans to announce two new US battery plants. These comments were later confirmed by GM. However sources said that no decision had been taken by the company about where to build the plants in the United States. It is expected that the company would make an investment of more than $2 billion for the two plants.  
 
A battery plant in northeastern Ohio, US, is already being built by GM’s   South Korean joint-venture partner, LG Energy Solution, the company said. The company has also announced building up a second battery plant will be located in Spring Hill, Tennessee with an investment of $2.3 billion.
 
(Source:www.reuters.com)