General Motors plans to exclusively offer electric vehicles by 2035

DETROIT – General Motors plans to cease production of all diesel and gasoline-powered cars, trucks and SUVs by 2035 and switch its entire new fleet to electric vehicles to become climate neutral by 2040, the company announced on Thursday.

The company plans to have 100% renewable energy in its US facilities by 2030 and electricity in global facilities by 2035 – five years ahead of a previously announced target.

GM’s announcement comes one day after President Joe Biden signed it a series of executive orders that prioritize climate change at all levels of government and put the US on the right track to curb carbon emissions to warm the planet.

GM’s shares rose as much as 7.4% to $ 53 per share during intraday trading Thursday morning. From 11:15 a.m. onwards, shares rose around 4%. GM has a market capitalization of around $ 73 billion.

For several years, GM has promoted a “triple zero vision,” including a zero-emission future from electric vehicles, but never announced a time frame. The other goals are no congestion and no accidents from advanced safety technologies and self-driving vehicles.

“For General Motors, the tailpipe emissions of the vehicles we sell are the most significant impact on CO2 emissions – in our case it is 75 percent,” said GM CEO Mary Barra said in the message on LinkedIn. “That is why it is so important that we move towards a future where every vehicle we sell is a zero-emission vehicle.”

Electric vehicles, including battery electric vehicles and fuel cell powered vehicles, are currently a niche segment of the global automotive industry, estimated by analysts to be less than 5% of sales. Electric vehicles are more expensive to manufacture than internal combustion engines because of the battery and fuel cells that power the vehicles. But automotive executives and analysts are optimistic about electric vehicles, led by stricter regulations Reducing CO2 emissions is the future for the automotive industry.

Dane Parker, GM’s chief sustainability officer, reiterated the company’s aim to be profitable in the transition from traditional internal combustion engines to electric vehicles.

“We believe that this will be the successful business model of the future,” he said during a press conference on Thursday. “We know there are hurdles, we know there are technological challenges, but we are confident that with the resources and expertise we have at our disposal, we can overcome these challenges and this will be a business model that we will be will.” can thrive in the future. “

GM has already announced plans to relocate three of its US electric vehicle manufacturing plants. Parker said the company was “excited” about the transition at its other plants.

“We believe this transition will protect all of our futures and help us create a future that will benefit not only the planet but also people,” he said.

GM plans to launch 30 new electric vehicles worldwide by 2025 under an investment of $ 27 billion in electric and autonomous vehicles during this period. Previously, the company had also announced expectations for a majority, if not all, of its Cadillac luxury cars and SUVs sold worldwide be EVs by 2030.

“This is the time for this technology, this is the time for this change,” said Parker, citing price reductions and technological advances, among other things. “The convergence of these things has made this a turning point that we want to capitalize on.”