General Motors (GM) CEO Mary Barra said on Monday that the automaker’s “destination is to get to the all-EV (electric vehicles) future”, despite sales of fully electric models more than halving sequentially in the final quarter of 2025.
Speaking at the Automotive Press Association (APA) annual event at GM‘s new Hudson’s Detroit headquarters, the CEO named three reasons for a higher EV adoption.
“Once we have a robust charging infrastructure, I think people are naturally going to pick electric vehicles because instant torque, opens us new design language, never having to go to the gas station,” Barra stated.
“Once someone buys an EV, they’re 80% more likely to buy another EV,” the CEO added.
Barra’s comments came just days after the Detroit automaker warned that it expects to take an additional $6 billion charge tied to changes in its EV production plans last year.
GM said on January 8 that it would record $7.1 billion in special charges in its fourth-quarter results, including costs related to restructuring its China business.
The company is due to report its fourth quarter earnings results on January 27.
Combined with last October’s filing covering losses from canceled supplier contracts and unused EV equipment, the company will have accounted for a total $7.6 billion charge tied to its shift away from EV production in 2025.
Tariffs’ Impact
Back in 2024, Barra had mentioned that, when the company “heard the word ‘tariff,’ we looked at no-regret moves.”
Last May, as the Trump Administration announced new tariffs, the company estimated that duties on imported vehicles and parts would cost the brand $5 billion in 2025.
A month later, GM unveiled a $4 billion investment in US production, bringing manufacturing of the Chevrolet Blazer and Equinox from Mexico.
However, the automaker said its “self-help” initiatives allowed the company to offset roughly 30% of the tariff impact.
The plan centered on boosting US vehicle and parts production, achieving approximately $2 billion in cost reductions, and maintaining disciplined pricing strategies.
EV Tax Credit Elimination
Last September, the $7,500 federal EV tax credit expired — driving to higher demand in the third quarter followed by an “EV Winter” in the final months of the year.
Before the end of the incentive, GM – which includes the Chevrolet, GMC, Buick and Cadillac brands – sold 710,347 units in the third quarter of 2025, 66,501 of which were EVs.
However, in the last quarter of 2025, sales of fully electric models slumped to 25,219 units – a decline of 43% compared to the same quarter in 2024 and of 62.1% quarter-over-quarter.
Nevertheless, GM managed to sell a total of 2.85 million vehicles in 2025, up 6% compared to the previous year.
EVs accounted for 169,887 units of the yearly total, representing a 48% year-on-year increase.
As a result, these figures positioned GM as the second-largest EV seller in the US, behind Tesla.
Future Plans
Looking ahead, Barra told reporters that the company is focusing on future production plans centered on major software advancements.
These include a roadmap to introduce eyes-free advanced driver-assistance technology by 2028.
“We have to think, ‘What will the regulatory environment be beyond 2028?’ We’ll have hybrids where we feel we need to,” Barra mentioned.
“We will announce what vehicles we’re refreshing when the time is right. I think we’re just getting started,” the CEO continued.
