General Motors makes surprising announcement about the price of its electric vehicles: 'We feel good'
Inside EVs reported that General Motors is not planning to raise prices due to the current administration's tariff policies.
"We now expect pricing to be relatively consistent for the remainder of the year." GM CFO Paul Jacobson stated, according to the report.
This announcement is surprising. Several of GM's EVs are assembled in Mexico, so the company is bracing for a huge cost impact in the billions of dollars. However, according to the Inside EVs report, GM is currently planning to hold steady on consumer pricing through the rest of the year.
The article cites that the Equinox EV is currently the most affordable EV in the U.S. and that GM credits its Mexico build location for keeping costs so low. The low price, coupled with the vehicle's 300-plus mile range, has made Chevrolet the fastest-growing EV brand in the country.
GM said it is expecting a $4 billion to $5 billion impact based on the current tariff policy, affecting imports from Korea, Mexico, and Canada. It plans to offset some of the costs with "self-help initiatives" and increased U.S. production of battery components, according to the report.
Switching from a gas-powered vehicle to an EV has environmental and financial benefits. EVs do not produce air pollution that contributes to the warming of the planet, so it is a more eco-friendly transportation choice. EV owners can say goodbye to rising, fluctuating gas prices, saving money over time.
Some EV skeptics cite the negative environmental effects that are a result of the pollution created during the battery manufacturing and charging process. While there is an environmental impact, the process is getting cleaner over time and has minimal negative effects in comparison to the 16.5 billion tons of fuel required for powering traditional gas vehicles. Roughly 30 million tons of minerals are dug up annually for the more affordable energy transition to EVs, and these minerals can often be reused, further reducing the environmental impact.
Jacobson is confident that GM's wide EV lineup – from the $35,000 Equinox EV to the $130,000 Cadillac Escalade IQ – will help the company maintain pricing.
"We feel good about where pricing is versus where we started the year, so we've assumed things remain constant from here," Jacobson said, according to Inside EVs.
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