General Motors Announces End Of Iconic Car Production To Build More Electric Vehicles

On Wednesday, General Motors announced that it would be ending production of the gas-powered Chevy Malibu to focus more on pursuing electric vehicles. The vehicle, first introduced in 1964, will have its production ended in November after the company has sold over 10 million vehicles since its debut six decades ago.

The end of the Chevy Malibu comes as the company attempts to move production towards electric vehicles like the next generation of Chevrolet Bolt EVs. The company will be retooling their Kansas City, Missouri factory from the Malibu to the Bolt. Sales of the Malibu have decreased in recent years, with only 130,000 Malibus sold last year, a nearly 35 percent decrease compared to sales a decade ago.

The shift away from the Malibu is part of a broader trend in the American car industry that has put more focus on larger vehicles like pickup trucks and sport utility vehicles. The gradual switch to larger cars has led to bigger profit margins for American car companies which has allowed them to begin mass investment into electric vehicles.

Amidst the pressure from the Biden administration to transition to electric vehicles, American car manufacturers are grappling with the complexities of this shift. This is evident in the struggles of Detroit-based companies like Ford, which reported significant losses in the first quarter of 2024. Ford's EV unit, for instance, revealed that it incurred a loss of $132,000 per vehicle sold in the first three months of the year, highlighting the financial challenges associated with the shift to EVs.

While Ford's first quarter earnings were positive news for the company, with its stock rising 2.4 percent in after-hours trading, the automaker's profits were largely driven by traditional gas-powered and hybrid vehicles as EVs continued to be a burden. According to CNN, Ford's EV department only sold 10,000 vehicles in the first quarter, a 20 percent decrease year-over-year, which led to its revenue plummeting 84 percent to just $100 million. These factors, driven by slumping consumer demand and price cuts throughout the industry, resulted in Ford losing $1.3 billion.

As car companies attempt to create an affordable electric vehicle for the future, gas-powered vehicles and their profit margin will suffer. American consumer demand for EVs has slowed in recent years as many Americans opt for its more traditional, gas-powered counterpart.

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