General Motors Prepares For Potential Strategy Shift If Emissions Regulations Rolled Back
General Motors shared what its course of action would be in the event of environmental regulations on new vehicles being relaxed, reports The Detroit Free Press.
While GM will still look to pursue EV production long-term, its short-term plans may adjust depending on what the incoming presidential administration will do.
“In a world where compliance is eased, you could see where you don’t necessarily need as much plug-in, you might not need as much (battery electric vehicles) as well. But we’ll cross that bridge,” said GM CFO Paul Jacobson at the UBS Global Industrials and Transportation Conference in Manalapan, Florida, this past Wednesday.
Jacobson added that GM will still aim to offer an all-electric lineup within the next decade as part of its long-term plans. The company is currently on track to meet its short-term goals and achieve variable profitability for its current EVs, with the next step being to attain pretax profitability.
“That’s going to be a function of where the adoption rates are, and obviously there’s a lot of uncertainty as to administrative priorities as we see turnover in the White House,” explained Jacobson.
In the event that regulations are rolled back, GM will have to adapt by cutting the cost it takes to make EVs faster, produce less EVs, and not take advantage of some economies of scale. Jacobson described these moves as tweaks as opposed to a full-blown pivot, with the company being conscience to not over-correct itself.
