As the nascent electric vehicle market space continues to grow, automakers like Tesla and Ford have been cutting prices and increasing EV output to claim a larger share of the market. In contrast to this philosophy, GM has decided to take a slower approach, and won’t significantly ramp-up production of its electric vehicles until later 2023 as a cost-saving measure.
According to a report by Reuters, The General plans to keep production output low to help alleviate the impact of the price-war started by Tesla and Ford, as well as respond to the lingering Ultium battery supply issue. In fact, despite full production capacity standing around 1 million units per year, GM will produce roughly 400,000 all-electric vehicles from 2022 to the first half of 2024. A majority of the vehicles in this 400,000 figure will be manufactured later this year, in 2023.
“GM knows it needs to look like a tech company to Wall Street and prop up its stock price by talking about its EV future,” said AutoForecast Solutions vice president of global vehicle forecasting Sam Fiorani. “But its bread and butter remains large pickups and SUVs with V8 engines, which continue to generate most of the company’s profits.”
As some background, GM is scheduled to begin production of four electric vehicles this year in the United States, including the Chevy Silverado EV, Chevy Blazer EV, Chevy Equinox EV, and GMC Hummer EV SUV (which has actually already started production). In addition, the Detroit-based automaker has announced various plans to increase production capacity for its EVs, including a retooling of the GM Ramos Arizpe plant in Mexico, an investment to build Chevy Silverado EV and GMC Sierra EV pickups at the GM Lake Orion plant, and an interest in building more plants in Michigan. These developments come as GM plans to offer 30 EVs by 2025.