General Motors says that the EV line had positive variable earnings in 2024. In simple terms, this means that the revenue generated from its EV sales exceeded the fixed costs associated with labor and materials required for their production. The metric does not consider the expenses associated with retooling factories and constructing new assembly lines for electric vehicles, yet it remains a significant step for General Motors. A push for electric vehicles began at General Motors in 2024. Other EVs that came out in 2023 saw more production, but by the end of the year, new models like the popular Chevy Equinox EV and Chevy Blazer EV could be bought. These successes helped GM have a great year; the company announced yesterday that its full-year sales rose by 9%. In its letter to shareholders, GM said that its EV business had become “variable profit positive” in the fourth quarter of last year. This may have been even more important. The word “variable profit positive” comes with a small reminder. Reuters says that this number shows that GM’s EV sales were higher than its fixed costs, which include the cost of labor to make the cars and the cost of putting them together. It eliminates costs like new production lines, so GM’s big investments in its EV factories are not taken into account. In any case, it’s a big step forward for GM. GM has figured out how to make the process of making EVs cost-effective once the original costs of things like retooling the plant are taken into account. The car company says that more production has helped it triple its market share in electric automobiles. GM now sells eight electric cars with different names. The Cadillac Lyriq has been on the market since the 2023 model year. In 2024, sales were more than three times as high as they were in 2023. The huge Escalade iQ joined the lineup at the end of the year. Cadillac plans to offer the Optiq and Vistiq as electric cars this year. The Chevy Blazer EV sold a lot of units very quickly, but the Equinox EV, which came out in the spring and sold 28,874 units, did better. In the fall, the GMC Sierra EV, which is related to the Silverado EV, came out. The Silverado EV also finished its first full year of sales. At the same time, sales of Hummer EVs went through the roof, rising from 3,244 in 2023 to 13,993 in 2024. Also, GM is still sending out some of its BrightDrop electric cars. In 2025, they will be rebranded as Chevrolet. There will be a test of GM’s progress with EVs in 2025. Cadillac will have to keep up the sales pace for the Equinox EV and Blazer EV for a whole year, in addition to introducing two new crossovers and increasing production of the Escalade iQ. All of these goals will have to be met in a world where electric vehicles (EVs) are becoming less clear in the US. Chevy also plans to use the Bolt name again on a new low-cost EV, which could be very important for future success.
