Automaker General Motors Co. (NYSE: GM) has announced a bold strategy to create an all-electric vehicle lineup by 2035. GM will also make its production facilities carbon neutral within the next 15 years.
Electrification is the Future of the Auto Industry
Companies like Tesla have proven that there is a large market for electric vehicles. Electrification is consistent with the world’s transition to renewable energy. With new technology, electric vehicles have become cheaper to produce. They are now more reliable and more convenient for consumers. The most advanced electric cars and trucks outperform gas models in raw power output. They are also gaining parity with range on a single charge.
GM has recognized the shift in both technology and consumer demands. CEO Mary Barra said on Thursday that the company was now focused on “an all-electric future.” She aims to have 30 electric vehicles for sale by 2035.
Analysts had expected that large automakers like GM would transition to include electric vehicles in their lineups. But, none had predicted that America’s largest automaker would commit to phasing out gas vehicles so soon. GM will also invest in the development of clean technology for commercial trucks.
Fuel-cell hydrogen technology is likely to feature in the company’s lineup next to battery-powered electric vehicles.
GM Already Has Experience in the All-Electric Market
Unlike some of its rivals, GM already has extensive experience in electric vehicles. Its Chevrolet Bolt was released in 2016. It was the company’s first long-range battery-powered vehicle. GM plans to release a battery-powered Hummer pickup truck later this year.
Other major automakers have committed to electrification but most haven’t ruled out hybrid vehicles. Nissan, a major competitor, has stated that it will have electrification on all models by 2030. This will include some that run on both gas and batteries. Ford has set similar targets for electrification with combined gas and battery models.
This early announcement and a major shift in strategy could put GM ahead of rivals when electric vehicles start to dominate the market. With GM shares trading at a relative bargain today, now could be the perfect time for future-focused investors to buy this stock.
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