Tesla in Sight... GM Announces Transformation into Electric Vehicle Manufacturer

Only Electric Vehicles Produced Starting from 2035

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] General Motors (GM) has announced a major transformation into an electric vehicle (EV) company. Considering that GM is the largest automaker in the U.S., this declaration is expected to cause significant ripples in the automotive industry.

According to the Wall Street Journal (WSJ) on the 28th (local time), GM announced that it will cease production and sales of gasoline and diesel engine vehicles by 2035. After 2035, the company plans to produce only electric vehicles. However, commercial heavy trucks will continue to be sold after 2035.

Mary Barra, GM's Chief Executive Officer (CEO), stated, "GM will join the efforts of countries and companies worldwide to create a safer and better world to live in."

Given that 98% of GM's revenue and profits come from internal combustion engine vehicles, this move is considered quite progressive.

According to GM's announcement that day, the company plans to increase investment in battery research and development (R&D), which is the core of electric vehicles. Batteries, a key component of EVs, account for about 40% of the vehicle's price, so reducing battery costs is central to competitiveness. GM is accelerating the development of technology to reduce battery prices by up to 60%.

Additionally, GM plans to invest $27 billion (approximately 30.2 trillion KRW) in R&D over the next five years, covering batteries as well as autonomous driving technologies.

Alongside this, GM also revealed a carbon neutrality goal to effectively reduce carbon emissions to 'zero' by 2040. This includes eliminating carbon emissions not only from the vehicles sold but also from processes such as factory operations.

The New York Times (NYT) analyzed, "GM, the largest automaker in the U.S. by sales, announcing its transformation into an electric vehicle company by 2035 will put considerable pressure on other automakers."