GM EXCLUSIVE To Increase Electric Vehicle Spending By 30%
WASHINGTON, June 15 (Reuters) – General Motors Co will increase global spending on electric and autonomous vehicles to $ 35 billion by 2025, a 30% jump from its most recent forecast as it continues its leadership in electric vehicles, people briefed on the matter told Reuters.
As part of the spending, the No.1 U.S. automaker will build two additional battery factories in the United States and advance some of its investments in electric vehicles, the sources said, who asked not to be identified. In November, GM increased its spending plans by $ 20 billion, a figure that was announced in March before the COVID-19 pandemic put an end to the auto industry.
The Detroit-based company declined to comment.
GM’s expected spending hike announcement comes less than a month after rival Ford Motor Co (FN) increased EV spending by more than a third to more than $ 30 billion. by 2030.
The combined $ 65 billion pledges from America’s largest automakers, along with increased spending from electric vehicle leader Tesla Inc (TSLA.O) and startups including Lucid and Rivian reflect the electric vehicle arms race that left some automakers like Lordstown Motors Corp (RIDE. O) to scramble to raise more funds.
In addition, GM chief executive Mary Barra is scheduled to meet with U.S. House Speaker Nancy Pelosi and other key Democrats on Wednesday to discuss electric vehicles and vehicle emissions, the sources said.
Barra will also meet with U.S. Representative Richard Neal, head of the Tax Policy Ways and Means Committee, Frank Pallone, who chairs the Energy and Trade Committee, and two key Michigan Democrats: Representatives Dan Kildee and Debbie Dingell , the sources said.
Working with Washington is essential as President Joe Biden has offered $ 174 billion to boost electric vehicles and charging as part of his infrastructure plan, including $ 100 billion in new discounts on electric vehicles. GM’s ability to claim the current federal tax credit of $ 7,500 for electric vehicles has expired.
GM has fought with Democrats over vehicle emission rules, but said last week it supports overall emission reductions in California’s 2019 deal with other major automakers. He also sought more flexibility to meet the carbon reduction target by 2026.
The Associated Press reported on Monday that GM was planning to announce two new battery factories in the United States, citing comments from President Mark Reuss. GM confirmed the executive’s comments, but sources said the company has not decided where in the United States to build the factories, which are each expected to cost more than $ 2 billion.
In January, GM said it set a goal of selling all of its new cars, SUVs and light trucks with zero tailpipes by 2035, a radical departure from gasoline and diesel engines.
GM and its South Korean joint venture partner, LG Energy Solution (003550.KS), are already building a battery plant in northeast Ohio and have announced that a second $ 2.3 billion battery plant dollars would be located in Spring Hill, Tennessee.
GM confirmed in November that it would accelerate the rollout of new electric vehicles, with plans to deliver 30 models globally by 2025, up from a previous target of 20 by 2023. Barra said the automaker wanted to exceed annual sales of 1 million electric vehicles in the United States. United States and China by 2025.
On May 26, a Senate committee proposed legislation that would increase tax credits up to $ 12,500 for electric vehicles assembled by unionized workers in the United States. The current maximum tax credit is $ 7,500.
The bill also includes a 30% tax credit allowing manufacturers to retool or build new facilities to produce advanced energy technologies, including batteries. This would represent a big boost to GM’s battery plant plans.
Reporting by David Shepardson in Washington Editing by Matthew Lewis
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