GM to Increase Spending on Electric Vehicles by 30%
General Motors - the #1 US automaker will increase its global spending on electric and autonomous vehicles by 30% to reach $35 billion through 2025, as it strives for EV leadership. As part of the spending, GM plans to build two additional US battery plants and move ahead some of its EV investments.
The announcement of increased spending comes less than a month after GM’s rival - Ford upped its EV spending by more than a third to over $30 billion by 2030.
The combined commitments by the largest US automakers, as well as increased spending by EV leader - Tesla and several startups including Lucid and Rivian, in the EV race leave other companies, such as Lordstown Motors Corp scrambling to raise more funds.
GM Chief Executive Mary Barra is scheduled to meet with US House Speaker - Nancy Pelosi and other key Democrats on Wednesday to discuss EVs and vehicle emissions. Barra will also meet U.S. Representative Richard Neal, head of the tax policy Ways and Means Committee, Frank Pallone, who chairs the Energy and Commerce Committee, and two key Michigan Democrats: Representatives Dan Kildee and Debbie Dingell.
Working with Washington is critical as President Joe Biden has proposed $174 billion to boost EVs and charging as part of his infrastructure plan, including $100 billion in new EV rebates. GM's ability to benefit from the current $7,500 federal EV tax credit has expired.
GM has sparred with Democrats over vehicle emissions rules, but last week said it supported overall emissions reductions in California's 2019 deal with other major automakers. It has also sought more flexibility to hit carbon reduction target between now and 2026.
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