Mark Reuss, president of General Motors, says that as the number of electric vehicles on the market increases, there are many misconceptions about cars and how automakers can stay profitable as they abandon internal combustion engines.
GM wants to position itself as a leader in electric vehicles by spending billions of dollars electrifying its fleet and promising a future free of fossil fuel emissions. But Reuss says being a legacy auto company competing with companies like Tesla, Rivian and Lucid can create confusion among consumers and industry experts alike, and in an interview with Insider he tried to shed some light on some of these misunderstandings.
Some automakers are using hybrids as a bridge in the transition to electric vehicles. Toyota, for example, invested heavily in hybrid vehicles and faced industry skepticism.
Companies don’t need hybrid vehicles for transition
“We won’t dilute our investment with hybrids,” Reuss says, adding that the automaker expects its EV business to turn into a profitable business before 2025. GM stopped producing its last hybrid, the Chevrolet Volt, in 2019.
Are separate sections required for EV and internal combustion vehicles?
Reuss also cites his belief in the coexistence of conventional internal combustion engines and electric motors. GM’s neighbor and rival Ford has recently decided to separate its internal combustion engines and EVs divisions and continue operating independently.
Chevrolet Equinox EVIs the electrical infrastructure sufficient?
Another point Reuss noted was that many people were worried that aging electrical infrastructure would not be able to sustain charged car batteries. Reuss says GM and others in the industry are already working to address this problem with energy storage and vehicle-to-grid energy sharing technology. On the GM side, this is run by a new division called GM Energy, and Reuss says they will offer a product designed to send unused energy back to the power grid during peak hours.
“People say, ‘There’s no way the grid can support EVs,'” Reuss said. “No, that’s not true.”
Charging and driving experiences should not be considered the same
Reuss said it can be troubling for drivers to rate electric vehicles solely on their experience of charging. While acknowledging that plug-in infrastructure needs to evolve further, he said GM is building its EVs to go as far as petrol vehicles on a full charge.
Reuss thinks there should be a focus on the driving experience through partnerships, such as with charging companies.
The charging industry is looking for its future
As the EV charging industry grows by leaps and bounds, many new entrants are facing tough times. The companies are expected to merge and buy each other in the coming years, and some people think this will be bad for EV drivers. However, Reuss states that the consequences do not necessarily have to be bad. “I don’t think it’s unhealthy,” Reuss says of mergers and acquisitions. “Not everyone should be able to make money that way. That’s why I think partnerships can be very, very good. Those who realize this and invest the money in the right place for people will benefit from it.”
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