Electric cars could be cheaper than gas, experts say
Posted On June 18, 2021
The world’s largest carmaker is betting on electric vehicles as an alternative to gasoline cars.
It plans to build more than 100 electric models for the next five years.
The cars, which are designed to run on solar power, battery power and batteries, are expected to become more affordable than gas-powered vehicles.
The electric cars would be priced at about $60,000 or less, with most coming in the mid-$30,000 range.
That means electric vehicles would be cheaper to buy than gasoline cars and much cheaper than diesel engines, the world’s biggest automaker said Tuesday.
The announcement came in a new report that the carmaker, whose parent, General Motors Co., is the world leader in electric cars, also announced plans to produce a $6 billion plant to build electric vehicles.
General Motors Chief Executive Mary Barra is expected to visit the plant later this month.
It’s the latest step in a long-term strategy to make electric vehicles affordable for consumers.
“We know that people want to buy electric cars,” Barra said in a conference call with investors Tuesday.
“They are the best, they are the most environmentally friendly cars on the road.”
The company also said it plans to use solar power in new models and said it has a plan to build a battery factory in Mexico and build more electric cars there.
The new report was released as the United States, which leads the world in auto emissions, is set to vote on whether to ratify the Paris climate agreement.
President Donald Trump and Democratic lawmakers have been pressing automakers to reduce the emissions of their cars.
Tesla, which sells its cars in California, has been lobbying to keep its production of the Model 3 electric vehicle off the U.S. market, which would help reduce its greenhouse gas emissions.
The company has been working on its own plan to reduce its emissions.
Barra told investors Tuesday that the company’s decision to build the plant in Mexico would help the company achieve its goal to have a zero-emission car by 2025.
“It’s a win-win,” she said.
“The Mexican plant is going to produce electric cars and will be a huge contribution to that.”
Barra also said the company will use renewable energy to help make the cars more affordable.
She said the electric cars have the potential to help lower the cost of fuel for people who drive on average 80,000 miles a year, compared with the average 80 to 85,000 a year for gasoline vehicles.
“People are willing to pay more for less,” she told investors.
“There’s tremendous demand.”
Barrakas company said in its new report it will invest $10 billion in electric vehicles and is developing electric vehicles for export.
The plan to export its cars comes after Tesla announced last year that it plans a plant in Chile to make its cars there for the first time.
The U.K. government is also expected to announce a $1 billion fund to help companies like General Motors and Tesla make electric cars for export, which is the second-largest government investment in the industry after the $1.4 billion U.N. investment in electric vehicle research in 2018.