Some automotive industry analysts think that General Motors ’aspiration to stop selling fuel-consuming cars in 2035 could cause great harm to its global market share if it does not significantly increase sales.
While electric cars are all the rage and companies like Tesla share prices that could make a legacy carmaker envious, car professionals continue to express concerns about preparing the world to move completely to electric vehicles. Companies that survey vehicle buyers often say that many still worry about vehicle autonomy and charging times, for example.
GM, the largest U.S. automaker, said its plan to eliminate exhaust pipe emissions by 2035 is a goal and not a guarantee. Still, it is making a big boost to pure electric vehicles, as more than 30 new models are expected by 2025.
GM’s plan does not include hybrids, which combine internal combustion engines with electric power, and which many see as a crucial bridge between traditional fuel-consuming and electric cars.
“They’re committed to doing everything electric, not making hybrids, not plugging them in, and jumping straight into electric vehicles,” said Michelle Krebs, an analyst at Cox Automotive. “So it’s a huge risk. It’s bold, it’s very ambitious. And the risk is, well, you know, they can do it when they do, especially in light of reach costs and infrastructure issues? “
It seems that the automotive industry is divided between companies that are spreading their investments in different engines, such as internal combustion engines, electric and hybrid engines. Some automakers, such as Toyota, are investing in other alternative propulsion technologies, such as hydrogen fuel cells.
By the way, GM has some factors in its favor.
Its Ultium battery technology, which was built in collaboration with LG Chem, has impressed many in the industry. GM says batteries use far less cobalt and other materials than competing batteries, which drastically reduces costs to levels that can make electric cars competitive and cost-effective. “Bag-type” cells look like a box that can be stacked in a variety of ways to fit a wide variety of vehicle designs.
GM also launches electric vehicles in categories that have been successful for the company, such as full-size trucks and sport utility vehicles.
Finally, GM has a long track record of technologies such as catalytic converters filtering pollution to engines that can turn off cylinders to improve fuel mileage.
However, some of these technologies did not resonate with customers and this could happen again. So GM is trying to create products that drivers will really want.
“I think that’s one of the keys,” said Sam Abuelsamid, senior analyst at Guidehouse Insights. “The products that are coming that have not yet been publicly announced are the ones that I think will be much more attractive to the market; the kind of vehicles that consumers currently want to buy.”