Energy

Why GM’s switch to EVs may be more critical in comparison to Keystone XL’s cancellation

Summary

In early February, an environmentalist working with an automaker stated that the future of transportation involves electric cars. Will Ferrell, a comedian, recently appeared to promote electric vehicles under the General Motors Company. The commercial follows after Americas’ top carmakers, […]

In early February, an environmentalist working with an automaker stated that the future of transportation involves electric cars. Will Ferrell, a comedian, recently appeared to promote electric vehicles under the General Motors Company. The commercial follows after Americas’ top carmakers, General Motors, announced their mission to venture into the auto motors industries.

After many years of silence regarding electric vehicles, GM was surprised after confirming that most of their cars will be electric by 2035. With the growing call for action regarding climate change, the transition to electric vehicles is inevitable. However, the North American energy sector, especially oil and gasoline producers, has a lot to lose.  Not to mention, the gasoline producers understand how important the most is and the urgency of this transition. The future of electric vehicles is bright. However, the losses it will bring to the oil industry is something many can point out from afar.

Experts such as Warren Mabee, the director of Queen’s University Institute of Energy and Environmental Policy, have rested his case on the matter. He believes that GM’s recent switch to EVs outweighs the importance of the Keystone XL cancellation. With the recent announcement, it is no secret that electric cars’ demand will go down for other carmakers as consumers will have many options.

Their demand will also reduce fuel-engine cars drastically since many customers will opt to settle for electric vehicles. According to Mabee, this situation will have long-term implications in the industry. He went ahead to talk about the opportunities and potential that this transition will give to the battery sector.

GM aims to make most of their cars electric by 2035, which has brought various people’s reactions. Some market observers have gone ahead to name the move as aggressive from their side. Critics have pointed out how complex this pledge is, and it will take all the Company has to fulfill it. Despite the high growth of electric vehicles, other matters will come to question. One of them is the infrastructure, particularly charging stations. Not to mention, the battery and power systems will need to develop the perfect support chain for this transition.

Jody Freeman, a former counselor for energy and climate in the US government, claimed that the project could also be successful if the electric settings are all green. For GM to achieve its goal, it will have to maintain an investment of $27 billion. In recent times, Ford Motor Co estimated their budget on the transition to $22 billion. Other car owners are also working on the same. The switch to electric cars is inevitable. However, the road ahead is tough and long. Besides, GM will have to work harder to achieve their goal.

Leave a Reply

Your email address will not be published. Required fields are marked *