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The announcement by General Motors on 28 January of the
intention to sell only electric versions of its light-duty vehicles
by 2035 is the most prominent EV announcement during a busy two
weeks for the world's major automakers.
In addition to GM's light-duty pledge, the company had announced
on 19 January that it will retool an assembly plant in Canada to
produce electric commercial delivery vans. Nissan announced on 28
January that all new models will be EVs "in key markets by the
early 2030s." Stellantis, which owns Fiat Chrysler and
Europe-centric brands such as Peugeot, Opel, and Vauxhall, said on
29 January it will debut 10 EV and hybrid models by 2025. Ford also
announced this week it will produce its first EV in China this
year, the Mustang. Volvo said it will triple its European EV
production this year, and it said in early January its goal is to
be selling 50% EVs and 50% hybrids by 2025.
The automakers' announcements coincided with President Joe Biden
saying he intends to redirect future US fleet vehicle purchases to
only EVs, as part of a "Buy America" executive order.
This could result in more than 650,000 light-duty vehicles and
trucks going electric over a number of years.
GM takes the lead
GM became the first of the traditional US automakers to set the
lofty goal of all EVs, and in a statement on 28 January, CEO Mary
Barra linked it to her earlier pledge that the company is aiming
for company-wide carbon neutrality by 2040. That pledge includes
elimination of greenhouse gas emissions from fuel burned by its
heavier-duty vehicles. The 2040 deadline advances by five years a
previously announced goal for net-zero carbon emissions.
"Earlier this month at [Consumer Electronics Show], I announced
General Motors' intention to lead an equitable and inclusive
transition to a net-zero carbon future," Barra said. "In support of
that statement, I shared details of our plans to introduce 30 new
electric vehicles by 2025 and spend $27 billion as part of a
commitment to put everybody in an EV."
GM will provide EV options across its full line of models and
price points, Barra added.
Along with vehicle production, Barra said GM will take an active
role in building out the charging infrastructure needed to keep all
those EVs running. The company is working with charging developer
EVgo to add more than 2,700 new EV fast chargers to its network by
2025—all of which will be powered by renewable energy.
Charging infrastructure is a key element to the successful
rollout of EVs for GM and other automakers in the US. The newly
formed Zero Emission Transportation Association, which includes
electric utilities, battery makers and supply chain companies,
automakers, and EV charging installation companies, proposed major
investments in EV charging in its "Roadmap to 2030 Policy Platform." The group
praised Biden on 28 January for "leading by example, sending a
strong market, and policy signal while catalyzing the
transportation electrification sector and advancing the critical
secondary market for EVs."
California, where a plan to end sales of internal combustion
engine light-duty vehicles in place, has an immense challenge in
building the charging infrastructure it needs, according to a
recently released California Energy Commission analysis (see IHS Markit article).
Reaction to GM announcement
GM's announcement drew praise from the Environmental Defense
Fund (EDF). "With this extraordinary step forward, GM is making it
crystal clear that taking action to eliminate pollution from all
new light-duty vehicles by 2035 is an essential element of any
automaker's business plan," said EDF President Fred Krupp in a
statement.
But the goal is "aspirational," GM acknowledged, and Stephanie
Brinley, IHS Markit principal automotive analyst, said that the
limits of the promise should be kept in mind. "Whether GM meets
that specific target or not, setting it has the effect of providing
a clear goal for the organization to work towards…. Although the
targets are aggressive ones, GM's announcements over the past year
provide credibility that the company may achieve them," she wrote
in an analysis.
Over the past 12 to 24 months, GM had made numerous
announcements on development of the batteries and fast chargers, as
well as new electric models such as the GMC Hummer EV pick-up and
Cadillac Lyriq, according to Brinley. "GM has also continued its
development of and investment in fuel cell EVs, even though most of
its announcements more recently have highlighted the company's
battery EV work and this latest statement focused on battery EVs,"
she wrote.
As an example of GM's ongoing commitment in the EV space, the
company announced on 19 January that it had signed a new union
contract ahead of spending C$1 billion (US$785 million) to retool
its CAMI assembly plant in Ontario, Canada, to produce its recently
unveiled electric-powered commercial delivery vans. GM said it
would begin work immediately to retool the CAMI plant for assembly
of the BrightDrop EV600 vehicle, with
FedEx Corp. to receive the first vehicles by the end of 2021.
Nissan targeting key markets
Nissan said it will target the US, Japan, China, and Europe for
its EVs.
"We're determined to help create a carbon neutral society and
accelerate the global effort against climate change," Nissan CEO
Makoto Uchida said in a statement. "Our offering in electrified
vehicles will continue to expand around the world, and this will
make a major contribution to Nissan becoming carbon neutral."
As of the end of 2020, Nissan said it had sold more than 500,000
Leaf vehicles, which became the first mass-market EV in 2009.
Nissan has pledged to achieve carbon neutrality across its
operations and through the life cycles of its products by 2050.
Like GM, Nissan will pursue electrification of its manufacturing
process, Uchida said, as well as investing in improving vehicle
battery technology.
Includes reporting by Steve Cronin and Jeremy Rakes for
OPIS.
Posted 29 January 2021 by Kevin Adler, Editor, Climate & Sustainability Group, IHS Markit