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General Motors is reassessing its investment plans in electric vehicles as sales collapse and shareholders fear that the initial headlong dive into EVs was a major mistake.
The massive carmaker is preparing a move to pull back from EVs and reassure investors that the business is still strong despite the slow EV sales, The Wall Street Journal reported Wednesday.
It is yet more evidence that Americans simply aren’t interested in EVs despite the enthusiastic boosterism of left-wing government officials who don’t have to worry about sales figures.
According to the Journal, GM is planning a $10 billion stock buyback, the largest in years, and will fund that buyback by curtailing many of its previously announced investments in EV and self-driving car development.
“[CEO Mary Barra] is trying to jump-start GM’s flailing shares while also refocusing investors on the underlying strength of its main business: selling gas- and diesel-powered trucks and SUVs,” the Journal reported.
In a Wednesday letter, Barra told shareholders that “the profitability and cash generation of our [internal combustion engine] business remains strong.”
GM’s stock has fallen 14 percent this year and hit a three-year low this month, due in part to the auto worker strike that cut its profitability projections from $12.7 billion to $11.7 billion.
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