General Motors' Q3 net profit fell 7.3% year-on-year to US$3.06 billion, while revenue increased 5.4% to US$44.1 billion. The company said the decline in profit was due to a number of factors, including higher costs for raw materials and components, as well as delays in the production of electric vehicles.
General Motors also announced that it is reshaping its new energy vehicle strategy and abandoning its challenge to Tesla's position in the U.S. electric vehicle field. The company said that it will focus on developing and producing more affordable electric vehicles, and that it will sell 400,000 electric vehicles in North America from 2022 to mid-2024 and produce 100,000 electric vehicles by the end of 2023. The company said it still plans to produce 1 million electric vehicles by 2025.
The news comes as the North American electric vehicle market is growing at a slower pace than expected. According to a recent report by IHS Markit, electric vehicle sales in North America are expected to increase by 37% in 2023, down from a previous forecast of 50%.
The slowdown in demand is being attributed to a number of factors, including rising inflation, supply chain disruptions, and the war in Ukraine. These factors have made it more difficult for automakers to produce and sell electric vehicles, and have also discouraged consumers from buying them.
General Motors is not the only automaker that is struggling with the slowdown in demand for electric vehicles. In recent months, a number of other automakers, including Tesla and Ford, have also announced delays in the production of electric vehicles.
The slowdown in the electric vehicle market is a setback for the auto industry and for governments around the world that are trying to promote the adoption of electric vehicles. However, it is important to note that the electric vehicle market is still in its early stages of growth, and that there is still significant potential for growth in the coming years.
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