General Motors announced Oct. 2 that it is looking to add to add more electric car options, including 20 new models by 2023 and two being released in the next 18 months.
According to The New York Times, GM's announcement was mirrored by Ford, who shared their vision to go electric, as well. This falls in the wake of China's big announcement to ban gasoline-powered vehicles, as well as California's heavy lean toward energy efficiency.
“General Motors believes the future is all-electric,” said Mark Reuss, GM's head of product, according to Wired. “We are far along in our plan to lead the way to that future world.”
Ford plans to add 13 electric models over the next several years, with a five-year investment of $4.5 billion, reports The New York Times.
German automakers Volkswagen and Daimler have pledged to build hundreds of thousands of electric vehicles in the coming years. Volvo, which is now Chinese owned, said they will be converting their entire lineup to be dual-powered by batteries and gasoline. With options flooding the market, GM looks to how they can carve themselves a portion of the profit, according to Wired.
GM loses $9,000 on each Chevy Bolt it sells, according to a report found by Wired. Reuss’ strategy relies on steadily dropping battery prices, more efficient motors, and lighter cars. Producing on a large scale will also help in creating a profit for GM. “This next generation will be profitable,” Reuss said to Wired. “End of story.”
Ford has several slow-selling hybrid, battery-powered and plug-in models like GM's Chevy Bolt, and has said it also plans to add hybrid versions of its big sports-utility vehicles, like the Ford Explorer, as it expands its electric offerings, according to The New York Times.
“China is a huge part of the story in E.V.s, and it is a big factor in the decision making of the automakers,” said Mike Ramsey, an analyst at Gartner who tracks auto-industry technology, to The New York Times. “China’s move toward higher emissions standards and the E.V. mandates gives the big global automakers certainty that they are going to have a significant market for these cars and they can know these investments will be worth it.”
China is just the first to make the pledge to be green -- while California is green with envy, said Mary D. Nichols, chairwoman of the California Air Resources Board, who spoke with Bloomberg News regarding China's bold move, according to The New York Times.
“The governor has certainly indicated an interest in why China can do this and not California," Nichols said.
While the federal government -- under the direction of President Donald Trump -- is looking to do the opposite, as the administration targets the Obama era fuel-emissions for the cutting block.
“GM has the ability to get all of us to that future so much faster,” Reuss said to Wired.
GM continues to push forward with their efforts to reduce carbon emissions and traffic deaths by focusing on driverless electric vehicles.