GM Set To Finance Its EV Lineup by Raising the Price of Existing Models
It is not exactly new for noted car maker GM to set focus on the EV sector. The company has been trying for quite some time to grab a significant chunk of the fast emerging electric and hybrid vehicle sector. GM already has electric variants of a few of its popular models, but the company is not satisfied with that. At least, it seems so from the newest developments. GM also commands a significant market share in the fuel-powered SUV and crossover segment in its home turf. The company recently launched the latest models of Suburban and Tahoe-both very popular in the US and overseas markets. The company is keen on earning more by selling these vehicles, and it also wants to invest the profit in making electric car models. Incidentally, the 2021 Chevy Suburban and Tahoe come with enhanced mileage, and they are even more significant than the outgoing models.
The GM president Mark Reuss reportedly justified the larger sized and pricier SUVs and linked their sales to EV development. Last week, the giant carmaker announced a massive investment amounting to $2.3 billion in an LG Chem EV joint venture. As per the industry insiders, more than 70% of GM’s North America centric profits came from SUVs and trucks sold in 2018. While these vehicles have become more environmentally friendly than their predecessors, they still run on fossil fuels.
While the news of GM putting the focus on making the more hybrid and electric cars is a positive development from the environment perspective, its emphasis on selling fuel-guzzling trucks and SUVs has drawn sharp reactions. GM is not alone responsible for carbon emission caused by such vehicles. Rival Ford sells its Expedition SUV in huge numbers as well. Another thing that worries the environmentalist groups is that GM and other carmakers are not particularly fast in launching electric vehicles, and only a handful of such models have seen the light of the day. Several of these are at the concept stage so far.