General Motors wants to end production of all diesel- and gasoline-powered cars, trucks and SUVs by 2035 and shift its entire new fleet to electric vehicles as part of a broader plan to become carbon neutral by 2040, the company said Thursday.
The company plans to use 100% renewable energy to power its U.S. facilities by 2030 and global facilities by 2035 — five years ahead of a previously announced goal.
GM’s announcement comes a day after President Joe Biden signed a series of executive orders that prioritize climate change across all levels of government and put the U.S. on track to curb planet-warming carbon emissions.
The company characterized its 2035 EV goal as an “aspiration,” citing regulations, infrastructure and other factors need to come together for the plan to be achieved.
GM plans to release 30 new EVs globally by 2025 under at $27 billion dollar investment in electric and autonomous vehicles during that time frame. It also previously announced expectations for a majority, if not all, of its luxury Cadillac cars and SUVs sold globally to be EVs by 2030.
The switch that GM and other automakers are planning to all electric vehicles raises several questions, chief among them, how will the industry make money on them. Currently, investment is into the hundreds of billions of dollars and even EV pioneer Tesla loses money on the sale of EVs, its 2020 profits coming solely from the sale of credits.