Trystan Casey
General Motors (GM) has been working on electric vehicles (EVs) for decades, with the official announcement of its first electric car, the EV1, on January 4, 1996, at the Greater Los Angeles Auto Show. The EV1 was a mass-produced, purpose-built battery electric vehicle that marked GM's initial foray into the EV market. Despite initial progress, GM faced challenges and discontinued the EV1 program in 2001, believing that electric cars were not profitable. Since then, GM has re-entered the EV market and is currently investing heavily in new plants, products, and technologies to produce EVs. The company has pledged to transition to a fully electric fleet by 2035, aiming to eliminate tailpipe emissions and become fully carbon-neutral by 2040.
| Characteristics | Values |
|---|---|
| Date of announcement | 4 January 1996 |
| Name of the electric car | EV1 |
| Launch date | Fall 1996 |
| Investment | $500 million into the EV1 and over $1 billion in total |
| Lease payments | $299 to $574 per month |
| Number of models | 10 |
| Percentage of overall fourth-quarter sales in 2024 | 6% |
| Percentage of overall fourth-quarter sales in 2025 | 12% |
| Goal | Sell only zero-emission light-duty vehicles by 2035 |
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What You'll Learn
GM's electric vehicle announcement in 1996
On January 4, 1996, General Motors announced at the Greater Los Angeles Auto Show that it would build an electric car, the EV1, to be introduced in the fall of 1996. The EV1 was not an entirely new concept, as electric vehicles had been around since the early 20th century. However, Ford's mass production of gas-powered vehicles had previously overshadowed the electric car industry.
The EV1 was a significant development in the history of electric vehicles, as it was the first modern, mass-produced electric vehicle from a major automaker. It featured innovative technologies, such as regenerative braking, which slowed the vehicle and captured its kinetic energy to recharge the battery. The EV1 was also designed as a subcompact two-seater vehicle to save weight and maximize performance, with extensive wind-tunnel testing conducted to enhance its efficiency.
Despite its pioneering features, the EV1 was controversial and short-lived. It was only available for lease in a few states, including California and Arizona, and around 2,500 were produced between 1996 and 1999. In 2003, GM cancelled the EV1 program, citing high production and maintenance costs. This decision sparked outrage among environmentalists, who staged protests and vigils at GM facilities.
The EV1's demise was influenced by California softening its zero-emission mandate in 2002, which relieved automakers of the pressure to develop electric vehicles. Additionally, GM faced challenges in transitioning from internal combustion engine technology due to their significant investments in that area. The company's focus on sport-utility vehicles and small trucks during a time of growing consumer demand for smaller, more fuel-efficient cars also contributed to its struggles.
In summary, GM's electric vehicle announcement in 1996 marked a significant step towards electrification in the automotive industry. While the EV1 faced challenges and ultimately met an early end, it paved the way for future electric vehicles and demonstrated the potential for a greener future in the automotive industry.
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The GM EV1
The EV1 was initially only available to residents of Southern California and Arizona. This was because, in 1990, the California Air Resources Board enacted a mandate stating that the seven leading automakers marketing vehicles in the United States must produce and sell zero-emissions vehicles to maintain access to the California market. Within a year of the EV1's release, leasing programs were also launched in various other American states.
In 1999, Ken Stewart, the brand manager for the EV1 program, described the feedback from the car's drivers as "wonderfully-maniacal loyalty". Despite this, GM believed that electric cars occupied an unprofitable niche of the automobile market. In 2001, GM terminated the EV1 program, crushing most of the cars, and disregarding protests from customers. The cancellation of the EV1 program has since remained a subject of dispute and controversy.
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GM's 2035 EV announcement
In 2021, General Motors (GM) announced its aspiration to eliminate tailpipe emissions and sell only zero-emission light-duty vehicles by 2035. This means that GM intends to transition from gasoline and diesel vehicles to electric vehicles (EVs) and possibly hydrogen fuel-cell vehicles.
This announcement reflects GM's commitment to becoming a global leader in the EV transition of the 2020s and 2030s. The company is investing tens of billions of dollars in new plants, products, and technologies to produce EVs in volume. This includes a joint venture with LG Chem to produce battery cells for its new Ultium electric-car architecture.
While GM has previously struggled to achieve mass-market sales with its EVs, such as the pioneering EV1, the company has recently made significant progress. In 2024, GM doubled its share of U.S. EV sales to 12%, offering a growing number of competitive models across different price ranges. This progress has been driven by an expanding EV lineup, with GM offering 10 models, including the Cadillac Optiq compact electric SUV and the Hummer EV SUV, the world's first all-electric Supertruck Utility Vehicle.
However, challenges remain for GM to achieve its 2035 goal. EVs comprised only about 6% of GM's overall fourth-quarter sales in 2025, and the company continues to rely on large trucks and SUVs, which are among the most challenging vehicles to electrify. Additionally, GM's EV progress may be hindered by the potential removal of EV purchase and lease subsidies and the imposition of tariffs on countries where GM manufactures its vehicles, such as Mexico.
Despite these challenges, GM's 2035 EV announcement demonstrates its commitment to an all-electric future and its recognition of the importance of the EV transition. The company aims to educate and market its EVs to consumers effectively and establish itself as a leader in the EV market.
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GM's electric vehicle gains
On January 4, 1996, General Motors announced at the Greater Los Angeles Auto Show that it would build an electric car, the EV1, to be launched in the fall of that year. The EV1 was a subcompact car and marked the introduction of mass-produced and purpose-built battery electric vehicles. Despite favourable customer reception, GM believed that electric cars occupied an unprofitable niche of the automobile market. The company ultimately crushed most of the cars and terminated the EV1 program in 2001.
Since then, GM has continued to develop and release electric vehicles, including pioneering EVs and hybrids. In 2021, the company announced its aspiration to eliminate tailpipe emissions and sell only zero-emission light-duty vehicles by 2035. This goal is part of GM's broader commitment to becoming carbon-neutral by 2040. To achieve this, GM is investing tens of billions of dollars into new plants, products, and technologies to produce EVs in volume. This includes a billion-dollar joint-venture plant with LG Chem to produce battery cells for its new Ultium electric-car architecture.
However, despite its gains, GM still faces challenges in delivering on its pledge of an all-electric fleet by 2035. EVs comprised only about 6% of GM's overall fourth-quarter sales in 2024, and the company continues to rely heavily on large trucks and SUVs, which are among the hardest vehicles to electrify. Nonetheless, GM remains committed to putting every driver in an electric vehicle and is working to increase EV sales and develop new models, such as the Cadillac Optiq compact electric SUV and the Hummer EV SUV, the world's first all-electric Supertruck Utility Vehicle.
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GM's electric vehicle challenges
General Motors (GM) has been working towards an all-electric future since the 2000s, when it was inspired by the success of the Toyota Prius and the emergence of Tesla Motors. However, despite its progress, GM still faces several challenges in delivering on its pledge of an all-electric fleet.
One of the main challenges is that EVs currently only comprise a small percentage of GM's overall sales, with the company still heavily reliant on large trucks and SUVs, which are among the most challenging vehicles to electrify. Another issue is the potential removal of EV subsidies, which have been key to persuading skeptical shoppers to lease EVs. GM's plans could be significantly impacted if these subsidies are removed, as they have made it possible for the company to offer cheap lease deals on its EVs.
In addition, GM must navigate the uncertainty of changing political landscapes. For example, the company would be vulnerable to any new tariffs imposed on Canada and Mexico, as it manufactures hundreds of thousands of cars in Mexico.
GM is also facing competition from rivals such as Ford and Toyota, who have focused more on hybrids, a decision that has paid off as consumers turn to hybrids to avoid the cost and charging hassles of EVs. Toyota, in particular, has long dominated the hybrid market and argues that EV technology is not yet advanced or affordable enough for most customers.
Despite these challenges, GM remains committed to its electric vehicle goals. The company is investing $35 billion in EVs and AVs and aims to have an all-electric lineup by 2035 and achieve carbon neutrality by 2040. GM is also expanding its charging networks through partnerships with companies like EVgo and introducing a network of charging stations, dedicated back-up home power, and new products across home, commercial, and community levels.
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Frequently asked questions
GM first announced its electric vehicle, the EV1, at the Greater Los Angeles Auto Show on January 4, 1996.
The EV1 was a response to a zero-emission vehicle mandate by California's Air Resources Board, enacted in 1990.
Despite favourable customer reception, GM believed that electric cars occupied an unprofitable niche of the automobile market. The company terminated the EV1 program in 2001 and crushed most of the cars.
GM has invested tens of billions of dollars in developing electric vehicles and aims to sell only zero-emission light-duty vehicles by 2035.
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