Despite increasing EV sales, GM delays its electric vehicle plans.

• The second U.S. electric truck plant and the Buick brand's first EV are being further delayed by GM, resulting in a slowing of its plans for all-electric vehicles.
• The delay in production capacity means the company will not meet its target of 1 million EVs in North America by 2025.
• Buick's first EV was not updated with a new timing by GM, as it was previously expected to be released in 2024.

The plans for all-electric vehicles by General Motors in Detroit have been further delayed, including the second U.S. electric truck plant and the first EV for the Buick brand.

The six-month delay in constructing the electric truck plant in Michigan, until mid-2026, will prevent GM from achieving its goal of having North American production capacity of 1 million EVs by 2025.

During the company's second-quarter earnings call, GM CEO Mary Barra informed investors that the company is dedicated to expanding in a responsible and profitable manner.

A week after raising concerns about GM's North American EV production capacity target, Barra made comments about the issue.

Buick's first electric vehicle, expected in 2024, did not receive updated timing from Barra. The entire Buick brand aims to be fully electric by 2030, as part of GM's plan to exclusively offer consumer EVs by 2035.

What are GM's plans for future battery cell plants beyond its two current joint venture facilities with LG Energy Solution in North America? Previously, GM announced plans for four multibillion-dollar plants in the U.S. by 2026.

On Tuesday, Barra stated that the company would increase cell production in a "significant rhythm."

Paul Jacobson, the CFO of GM, refused to disclose any information about potential plans to postpone or scrap the automaker's upcoming EV battery cell factories, except for the two facilities located in Ohio and Tennessee.

"Jacobson stated during a media briefing that we will continue to prioritize the customer and are rapidly expanding our cell plants one and two. Currently, we have no further comments to make."

Despite a 40% increase in U.S. EV deliveries during the second quarter compared to the previous year, GM's EVs still accounted for only 3.2% of its total second-quarter sales in the U.S.

Jacobson stated that the company plans to increase assembly to produce and sell between 200,000 and 250,000 all-electric vehicles in North America this year. He revealed that the company sold approximately 75,000 of its new EVs during the first half of the year.

Jacobson stated that GM anticipates its electric vehicles (EVs) to be profitable on a production or contribution-margin basis when it produces 200,000 units by the fourth quarter.

Jacobson stated that the company is still sticking to its position, and that additional EV sales are predicted to decrease the company's earnings because they will have a variable profit lower than GM's traditional gas models.