In the month of May, General Motors sold 252,894 vehicles in the US, up 3% year-over-year, while retail sales increased 9% and fleet sales were down 10%. In the first quarter of 2013, General Motors reported net revenue of $36.9 billion, down 2.4% year-over-year. The company also reported net income attributable to common shareholders of $0.9 billion, down from $1 billion a year ago. General Motors Company (NYSE:GM)’ total market share was 17.5% in May, down from 18.5% the previous month.
The much desired breakthrough
General Motors and BMW plan to introduce a new specification for a DC fast charger that will charge 80% of the car’s battery in 20 minutes. The BMW i3 and the Chevrolet Spark would be the first cars employing this device. The successful implementation of this new charging technology will create an competitive advantage for both BMW and General Motors.
According to General Motors Company (NYSE:GM), the upcoming Spark EV is the most efficient production electric vehicle in the world. The Spark EV is now available at two dealerships, one in Los Angeles and another in Costa Mesa, and features a starting price of $27,495. General Motors has a target to have 500,000 electric vehicles on the road by 2017.
General Motors Company (NYSE:GM)’ overall strategy is to increase the sales volume of its electric cars while reducing their manufacturing cost. General Motors needs a breakthrough in the electric cars industry like the one that it’s working on with BMW. Without that breakthrough, General Motors is years away from making money on the Volt as its competition will be increasing every day. So far, General Motors is not benefiting from its move into the electric car industry.
Red Chip has no position in any stocks mentioned. The Motley Fool recommends General Motors Company (NYSE:GM) and Tesla Motors . The Motley Fool owns shares of Tesla Motors Inc (NASDAQ:TSLA).
The article Is General Motors Years Away from Profits in the Electric Cars Industry? originally appeared on Fool.com.
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