The General Motors Company (NYSE:GM) in its annual sustainability report has said that it may not be able to reach the target of producing 500,000 GM vehicles by 2017. The company is trying to come up with vehicles that are powered using a particular form of electricity. The company is the No. 1 automaker in the US and intends to lower the gasoline prices and requirement by producing such models.
However, in its annual report the automaker has said that the reduction in the prices of gasoline and instant rise in the introduction of new vehicles has lowered the expected sales of electrified products. Such products include pure electric vehicles, plug-in hybrids and vehicles that come with eAssist system. The eAssist system boosts fuel efficiency in the cars powered by gas.
The report further says that although the company is committed to electrification, the forecast based on the current working projects shows that the company will fall short of the expectations. However, the demand for such vehicles had lowered due to which the initial projections are nowhere near to the current demand.
GM Pushing Towards US Stringent Requirements
According to the company, it had counted around 180,834 electrified GM vehicles on the roads of America in 2014 which is quite a huge jump from the 153, 034 vehicles running in 2013. The Chief Executive of General Motors Company (NYSE:GM), Mary Barra in November 2012, had outlined the target for 2017. At that time, Mary was the chief of GM’s global product and had said that the company wants to increase eAssist system to boost the fuel efficiency in around 25% vehicles running on gasoline.
The target was aimed at pushing the stringent US requirements expected to be applicable from 2025. High prices are one of the main reasons why the electric vehicles have not been popular among the consumers. Other reasons behind the lack of popularity of these products include a disappointing driving range and under-developed infrastructure for charging.