In the face of inflation and rising commodity costs General Motors is lining up strategic partnerships with suppliers to keep its electric vehicle launches on schedule.
GM CFO Paul Jacobson said the automaker will continue to form partnerships or invest in raw material suppliers to ensure GM has the parts it needs to hit a production target of 400,000 EVs in North America by the end of next year.
“Everything is on the table when it comes to the way we have to be thinking about some of these commodities that might be in tighter supply in the future," Jacobson said Wednesday during the Deutsche Bank Global Auto Industry Conference webcast.
That means GM is willing to invest money and equity in suppliers, partner with them or finance some startups, he said. Jacobson did not specify which commodities might be in short supply, but GM has lined up deals for the supply of cobalt and lithium — which are key to EV battery production — and, most recently, wind energy.
Jacobson said that as of mid-June GM is "several hundred thousand" vehicles short of what it traditionally would have held in inventory due to the chip shortage and other supply issues. But supply is improving and he stands by GM's projection that it will build 25% to 30% more new cars this year compared with last year.
