General Motors is actively developing its supply chain for electric vehicles to increase efficiency and profitability, according to company President Mark Reuss. The automaker plans to manufacture 100,000 electric vehicles in the second half of this year, building on the 50,000 produced in North America during the first half. Reuss emphasizes the importance of designing architectures specifically for electric vehicles rather than retrofitting internal combustion engines, as this approach will lead to profitable EVs. GM’s Ultium battery platform, used in all its EVs except the Chevrolet Bolt EV and EUV, offers enhanced efficiency, capability, proportion, and functionality.

GM executives anticipate achieving low- to mid-single digit margins for EVs by 2025, including emissions credits, software, and aftersales revenue. They are also considering the impact of federal EV tax credits. Reuss emphasizes that GM’s EV decisions predate the incentives, demonstrating the company’s commitment to profitability through scale and strategic partnerships. GM is expanding its battery production capacity and securing raw materials through partnerships along the supply chain. The automaker aims to have built 400,000 EVs by mid-2022 and achieve an annual capacity of 1 million EVs by 2025.

GM remains flexible across its manufacturing footprint to produce both gasoline-powered and electric vehicles. The Orion Assembly plant will be converted to produce Ultium-based Chevrolet Silverado and GMC Sierra electric pickups, and the company plans to reintroduce the Bolt EV as an Ultium-based vehicle in response to strong customer demand.

Reuss also highlights the ongoing labor negotiations with the UAW, calling them “truly historic” in a time of rapid industry change. He expresses confidence in GM’s ability to succeed in the intense marketplace and reward its team members, employees, and stakeholders while investing in the future.