First to profit from electric cars, says GM

Date: 5 MAY 2017posted by Car Rentaledited by WinX

With all buzz in the auto industry surrounding electric cars and industry experts predicting a very positive forecast for the market, almost all automakers has or is in the process of developing a line of their own electric cars. However, not many automakers are making a profit off their electric car sales. Many auto manufacturers are in the red producing electric cars but breaking even only because of government sponsored subsidies. Some automakers have even opted out of producing their own line because of how difficult it is to make money off them. A reason for why electric cars are so expensive to produce is because of the lack of technology. A lot of the revenue ends up going back into the development of electric vehicles. Another reason is the price of components, which like the technology is sparse and therefore costs more. A Generals Motors executive has made the claim that they will be the first to sell them profitably. "We know the customers would like to drive electric cars but are unwilling to pay any more for them," Mark Reuss said, GM executive vice president for product development. "That's why we're going to be the first company to sell electric vehicles that people can afford at a profit."

Reuss said GM's plans to cut costs is relatively comprehensive and includes the components that have set back competitors until now from turning plug-in cars into a profit center. "What we've been working to do is taking mass out. What that sets us up to do is have more efficient batteries because it doesn't take as much power to [move] the vehicle," said Reuss. "We own our own battery chemistry. We integrate the pack and we have our own electric motors. We own all that design." LG is a major supplier to GM's Bolt EV program. So much so, that the Bolt EV is as much LG as it is GM. However, while LG is manufacturing and supplying the components, GM does own some of the designs. "The integration piece of that is something no one else has. You have to integrate the whole car. We feel good about that." GM's electric vehicles will eventually segway into autonomous vehicles. Deploying an all-electric autonomous vehicle would help lower battery cost. The company has already begun self-driving tests in Detroit, Phoenix and San Francisco.

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