As the world grapples with increasing pressure to reach pressing climate goals, the electric vehicle (EV) has been a beacon of hope within the automobile industry. With the transportation sector in particular signaled out to need to become transformed towards more sustainable solutions, major automobile brands are setting their sights on hybrid and EV model options. However, this automobile brand has made a surprising investment decision, set to scale back the advancement of EVs.
Are EVs the future of passenger vehicles?
With climate change being arguably the most pressing global concern of our time, preserving our natural resources and limiting mass consumerism has become a priority for many groups and individuals. Businesses and co-operations have pledged to meet sustainability targets to play their role in limiting fossil fuel use, and governments are increasingly looking at ways to transform multiple economic sectors to be more sustainable.
Within the automobile world, the internal combustion engine, while still the most dominant engine seen on the road by an overwhelming majority, is being increasingly understood to be an engine that cannot be the future of the automobile. With advancements in battery-engine technology, the EV is on the rise, with nearly all major automobile companies planning to have the electric engine play a key role in achieving carbon-neutrality.
GM scales back on EV production
Despite major automobile companies pledging to ‘go green,’ getting rid of the internal combustion engine completely is set to be a difficult task, as companies must balance current consumer demand as well as making EVs more accessible to the general public. Currently, an EV is still more expensive than an entry-level internal combustion engine car, as well as the lack of widespread supporting infrastructure for EVs is a major concern for drivers.
Recently, General Motors (GM) made a surprising announcement, making their 2035 target of EV-only production less of a reality. The company, which is the parent company of automobile brands Chevrolet, Buick, GMC, and Cadillac, announced this month that it would be investing approximately $4 billion into vehicles powered by the internal combustion engine.
“We still believe in an all-EV future,” said GM in a statement.
The new investment announcement comes in response to not only decreasing EV sales globally, but also in response to changing government regulations and policies with regard to supporting automobile manufacturers producing more sustainable solutions. However, the company has not abandoned its EV production with this new announcement. The company has sold over 37,000 EVs in the first quarter of this year, making it the second highest seller of EVs in the US behind electric vehicle giant Tesla.
Is an all-EV future aspirational, or a real possibility?
While there has been significant progress in the development of EVs across automobile brands, many are making changes to their long-term investment strategy and seemingly continuing to prioritize internal combustion engine developments. Major automobile manufacturer Volkswagen announced last year that it would be redirecting $63 billion of its R&D budget through to 2027 for the advancement of its internal combustion engine, making its plan to only sell EVs by 2033 appear unlikely. However, there is hope with electrical automakers like BYD, fast expanding and major Japanese automakers Toyota, Mazda, and Subaru teaming up to accelerate EV manufacturing.
Being an example for other countries to strive towards, Norway has recently announced that they are on track to have 100% of new-vehicle sales in the country be pure electric. Last year, 89% of new vehicles sold were electric, a 5% increase from 2023. The country has made a considerable effort to encourage its citizens to not just go the hybrid route, but to fully embrace total electric engines. The country hopes to achieve 100% electrical vehicle sales of all new vehicles by the end of 2025.
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