"It's a lot, and it all comes against the backdrop of President Trump's trade wars, tariffs, and the expiring EV tax credit here in the United States, all of which have really upended the car business. Just last week, the day before I talked to Mary and Sterling, GM took a $1.6 billion writedown on its EV business against falling demand."
"A lot of long-term plans about the EV transition are falling by the wayside like this. So, I wanted to know how Mary was thinking about it all, especially since she made some of the most aggressive EV platform bets among the legacy automakers several years ago. In one important way, that bet really paid off: GM has a full lineup of EVs running on a mature platform now."
"But the market has changed dramatically, and consumers are becoming far more price sensitive. The average cost of a new car in the United States just broke $50,000 the first time. And we've heard from a lot of car CEOs lately who say that's a big problem. Most consumers don't want to pay much more than $30,000 for a new car, and that means all of these costs need to come down."
GM announced a Google Gemini-powered in-car AI assistant, a new hardware and software platform for the Escalade IQ arriving in 2028 with true Level 3 autonomous driving, a home battery business, and a robotics division. These announcements occur amid trade tensions, tariffs, an expiring U.S. EV tax credit, and a recent $1.6 billion writedown on GM's EV business tied to falling demand. GM's prior EV platform investments yielded a full lineup of EVs on a mature common architecture. Rising new-car prices and consumer preference for vehicles near $30,000 increase price sensitivity and pressure costs downward. GM remains confident that EVs, autonomy, and AI will broaden vehicle adoption rather than only grow premium sales.
Read at The Verge
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