Automotive giant General Motors has announced plans to stop the sales of petrol and diesel car models by 2035, while reallocating investments into the world of electrified vehicles.
The announcement came after CEO Mary Barra announced that General Motors was aiming to become completely carbon neutral by 2040, and its pivot toward electric vehicles will underpin the company’s goal.
By 2035, General Motors says that all of the models on sale will be powered by an electrified powertrain, and the stock market responded positively. General Motors shares jumped by as much as 8% after the announcement, increasing GM’s market cap to $73 billion.
General Motors is set to spend more than $27 billion on the research, development, re-tooling its facilities and the production costs of new electric vehicle models, as well as investments in battery manufacturers.
This investment far outweighs the amount of capital that has been invested into its petrol and diesel models.
GM has previously announced plans to produce more than 30 electric vehicle models, with 20 models set to be sold in the United States. This was known as the ‘triple zero vision,’ that mapped out a future for the company that comprised vehicles producing zero emissions, added to zero congestion and had zero crashes, through smart technologies and automated driving.
As it stands, General Motors looks five years ahead of its original schedule to power its U.S. production facilities with 100% renewable energy. Previously, GM was aiming for a 2035 deadline for powering its U.S. manufacturing plants with renewable energy, and 2040 for its international operations.
Now, though, General Motors looks set to power its U.S. operations with renewable energy by 2030, and its international arms by 2035.
General Motors To Stop Petrol & Diesel Car Sales by 2035
GM’s CEO, Mary Barra has released a statement saying that “for General Motors, our most significant carbon impact comes from tailpipe emissions of the vehicles that we sell – in our case, it’s 75 per cent.”
Barra continued to explain that “that is why it is so important that we accelerate toward a future in which every vehicle is a zero-emissions vehicle.”
Chief Sustainability Officer at GM, Dane Parker has said that the company is committed to staying profitable through its transition from internal combustion vehicles to electric vehicles.
Parker said that “we feel is this going to be the successful business model of the future… we know there are hurdles, we know there are technology challenges, but we’re confident that with the resources we have and the expertise we have that we’ll overcome those challenges and this will be a business model that we will be able to thrive in the future.”
Parker added that the company feels “excited” about the current retooling of three of its production facilities to mass produce electric vehicles.
“We feel like this transition is one that will protect all of our futures and will help us create a future that will benefit not only the planet, but the people,” Parker added.
“This is the time for this technology; this is the time for this change. The convergence of those things has made this an inflection point that we want to seize,” he concluded.