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.
2024 GMC Hummer EV SUV
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.
2024 Chevy Blazer EV
“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.”
2024 Chevy Silverado EV WT
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.
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Comments
This should come as no surprise. Despite all Mary’s talk GM is still foot dragging it’s way to the future. They’re falling further snd further behind.
It appears that GM is running the numbers and calculating that EVs will be money losers with the technology at its current level. In the last month we have seen announcements of a delay in a battery plant in Indiana and then of an almost $1B investment in Flint and Bay City plants for the next-gen V8. Now this announcement of intentional production delays due to battery supply and pricing issues. How do they fulfill Barra’s pledge to pass Tesla by 2025 at this rate?
Also, what else happens in 2024? Possibly lower oil prices and no EV tax incentives? Be smart to wait a a year.
$1B in ICE vehicle investment at one factory, while downsizing other ICE part production at other facilities, and replacing that with EV component production.
And investing around $35B in EVs over the next few years.
……..and no results on the EV front with no meaningful EVs to choose from as of July 2023. Looking pretty grim for GM as TSLA starts to hit its groove. Goodbye GM who so far is being left in the dust.
When was the last time GM didn’t manage to squander the momentum with an epic failure to launch? All show and no go makes the Mary a true GM CEO….
You mean the CEO that has driven GM to record profits and revenue?
You think like GM — short term thinking. Why does GM rely so much on ICE vehicles that have short lives (less than 10 years manufacturing) during this EV conversion.
Could it be that GM has heard its customers and dealers screaming NO?
No, because they don’t listen to them!
Somewhat like the Buggy whip manufactures did?
LOL, very few people outside of the coastal cities are interested in EV’s. Most of the continental landmass is not suited for them and a strong contingent just wants the opposite of whatever CA wants.
You do know it’s about 75% that live on the coastal states, right?
GM is being reasonable and prudent. It’s not ever a good idea in business or any other aspect of life to promise things that won’t be delivered on a set timeframe. They are spending big money on things involved for EV production. But because they’re relatively late to the game, it’s gonna take some time to get up to speed.
So is the 6 flavors or whatever of the Lyriq 6 of the 30 evs coming by 2025….hope not!
As usual gm is not a leader in any automobile trend or tetonic shift like EVs. Over promise and under deliver. Next hallmark will be the quality of new EVs. Who would you place your bet on? GM and the UAW? 😂
An all-EV future is a fool’s errand. Even Toyota came out in the past few days stating that a combination of OPTIONS, including EV’s, hybrids, and ICE are needed. This is more in line with what some geopolitical strategists like Peter Zeihan have been saying for years now. Lower case gm leadership is a mess.
The best thing gm could do now is keep getting into SOME EV’s, but build more hybrids like the new E-Ray Corvette, but improve upon that electric system for the hybrids.
Shocking but NOT shocking that GM has been all talk thus far on BEV’s
How can they be that far behind when they allegedly started much earlier.
They need to hurry up or be left behind!!!
GM introduced the first mass-produced BEV over 26 years ago. They are no stranger to EVs, nor are they naive to the pros and cons of EVs.
This is where I think Ford’s plan to have essentially two different arms of the organization makes sense. GM can keep investing in V8’s and efficient high output V6 engines for use in money making ICE trucks and SUVs. Then use that profit to help fund EV and hybrid smaller CUVs and cars. If they scale it right, we can get the cost of the EVs down to a reasonable and attainable level for younger and less financially fortunate consumers. Get them into the brand, but don’t alienate your die hard brand loyal consumers.
Yeah? GM had so much foresight about EVs they recalled and scrapped all the EV1s. They then dropped their EV program making it possible for Tesla to monopolize the EV market. GM is not a leader in the auto business.
What a total surprise !! This might impact Mary’s hollow promises of 20 BEVs available in 2023 and outselling Tesla by 2025 – no chance. Either commit to EVs or don’t, but quit promising nonsense GM is incapable of delivering.
Sounds about right.
Does Michigan have legal cannabis?
They’re smoking something up there in the silver silos.
Battery cars are a failure of the past ,are and will be forever boring. Just throw aways ,oh how do we dispose of them ?
90+% of the battery packs are recyclable and contain high value materials.
I suppose we could burn them like ICE vehicles do with their propellent?
This argument harkens back to the attitude of the public toward the person who purchased the first car in 1897. In 1897, the attitude toward the automobile was one of skepticism and concern. Automobiles were seen as noisy, dangerous, and impractical, and many people were resistant to the idea of them replacing horse-drawn vehicles. However, there were also those who saw the potential of the automobile and were excited about its possibilities. Overall, the early years of the automobile were marked by a mixture of curiosity, uncertainty, and opposition.
Seems like we are seeing a repeat of history. Those who dislike EV for any (pick a reason) and those who are excited by the potential of the technology and its promise.
I suppose we could burn them like ICE vehicles do with their propellent?