The electric Chevy Equinox is America’s best-selling EV outside of Tesla. Cadillac is now leading the luxury segment, but GM said its aggressive EV expansion is over as it shifts back to ICE vehicles.
Chevy, Cadillac drive GM EV sales growth in Q3
GM’s electric vehicle sales are growing faster than those of any major OEM in the US. In the third quarter, Chevy, Cadillac, and GMC sold nearly 67,000 EVs, more than doubling from Q3 2024.
Combined, GM accounted for 16.5% of all EV sales in the US in Q3. Although it’s outpacing the industry, GM is pulling back EV plans and will continue to offer several internal combustion engine (ICE) vehicles for a bit longer than expected.
After achieving its highest third-quarter market share since 2017, GM’s CEO Mary Barra said, “With the evolving regulatory framework and the end of federal consumer incentives, it is now clear that near-term EV adoption will be lower than planned.
Due to the changes, GM is “reassessing” EV capacity and manufacturing in the US. Barra said the company “aggressively expanded our electric vehicle capacity” over the past few years to meet the regulatory requirements.
With the recent policy changes, including the $7,500 federal tax credit expiring at the end of September, GM is shifting back to ICE vehicles.
“It’s clear that ICE volumes will remain higher for longer,” Barra explained, adding that GM will continue to produce gas-powered vehicles for the foreseeable future.
GM is onshoring production of the Chevy Blazer. It’s also developing a next-gen Cadillac CT5 and plans to extend the Cadillac XT5. In early 2027, GM will begin building the Cadillac Escalade and a new full-size, light-duty pickup at its Orion Assembly plant.
The company now plans to permanently end production of the BrightDrop electric van at its CAMI Assembly plant in Ingersoll, Ontario.
Although Barra still claims that “electric vehicles remain our North Star,” GM announced last week that its shifting EV plans would cost about $1.6 billion.
GM beat top and bottom lines in the third quarter, posting $45.59 billion in revenue with an adjusted EPS of $2.80. Share prices are trading up over 13% after GM raised its full-year guidance. The company now expects an adjusted EBIT of $12 to $13 billion, up from the previous $10 to $12.5 billion it previously forecasted.
It is also expected to take less of a tariff hit than expected. GM updated its full-year gross tariff impact to $3.5 to $4.5 billion, down from $4 to $5 billion.
Meanwhile, GM’s net income plunged 57% to $1.3 billion in Q3, down from about $3.1 billion in the same period last year.
GM’s CFO Paul Jacobson said during an interview on CNBC’s Squawk Box Tuesday morning that about 40% of the company’s EVs were profitable on a production basis. He explained that GM expects EVs to take longer than anticipated to reach profitability.
“We continue to believe that there is a strong future for electric vehicles, and we’ve got a great portfolio to be competitive, but we do have some structural changes that we need to do to make sure that we lower the cost of producing those vehicles,” Jacobson said.
Looking ahead, GM is focused on restoring profit margins in North America (8 to 10% adjusted EBIT margins), while also “driving EV profitability, maintaining production and pricing discipline, managing fixed costs, and further reducing tariff exposure.”
GM said it will continue to invest in new battery chemistries, form factors, and architectural improvements to boost EV profits in the future.
The shift comes despite Chevy, Cadillac, and GMC’s strong growth, largely thanks to EVs. Chevy is the fastest-growing electric vehicle brand, with the low-cost Equinox EV proving to be a hit. Cadillac is the best-selling luxury EV brand in the US this year (excluding Tesla) with three of the top ten models, including the Lyriq, Optiq, and Vistiq.
Looking to try GM’s electric vehicles for yourself? From the Chevy Equinox EV to the Cadillac Escalade IQ, you can use our links below to find available models near you.
- Chevy Equinox EVs near you
- Chevy Silverado EVs near you
- Chevy Blazer EVs near you
- Cadillac Optiq near you
- Cadillac Lyriq near you
- Cadillac Vistiq near you
- Cadillac Escalade IQ near you
- GMC Sierra EVs near you
- GMC Hummer EV pickup near you
- GMC Hummer EV SUV near you
Author: Peter Johnson
Source: Electrek
Reviewed By: Editorial Team
