As reported by GM Authority back in January 2022, General Motors announced that it was funneling a total of $6.5 billion in investments into the GM Orion and GM Delta Township Assembly plants, with the former receiving updates to produce electric vehicles like the Chevy Silverado EV and GMC Sierra EV, along with setting up a new battery assembly line within the facility. Now, it appears as though production of the two all-electric pickup trucks has been postponed at the GM Orion plant.
According to a report from Reuters, General Motors has announced that production of the Silverado EV and Sierra EV at the Lake Orion Assembly plant has been delayed, possibly indicating that electric vehicle production and demand isn’t quite as strong as some may perceive.
For reference, production of the two EVs at the plant was originally scheduled to kick off late 2024. Now, the Detroit-based automaker has stated that production will commence late 2025.
A General Motors spokesperson claimed that the change was being made “to better manage capital investment while aligning with evolving EV demand.” In addition, the spokesman stated that the move does not impact GM’s battery plant plans, and has no connection to the ongoing contract negotiations with the UAW.
Automotive News reported that roughly 1,000 workers at the GM Orion plant will be eligible to transfer to other assembly plants in Michigan, including the GM Factory Zero plant that already builds The General’s all-electric pickups and SUVs. “We have identified engineering improvements that we will implement to increase the profitability of our products,” GM also stated.
Reuters also claimed that General Motors still plans to terminate production of the 2023 Chevy Bolt EV and 2023 Chevy Bolt EUV by the end of the 2023 calendar year. However, GM Authority recently reported that Bolt orders would be extended through November 2023.
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Comments
Good. More E-Ray type V8 hybrid vehicles, please. Camaros, trucks, SUVs, sedans, etc. The engineering that went into and result of the E-Ray looks GREAT!
Not surprising…unless someone was independently wealthy, I can’t imagine too many people that would want an EV Silverado/Sierra that runs somewhere between $80,000 (for a WT) to over $105,000 (for an RST or Denali). GM needs to focus on making affordable cars, whether they are hybrid or ICE. I am seeing the Chevy Trax and Buick Envista all over town (I am in Michigan, so a lot of GM employees/retirees call this area home). They are nice looking little city cruisers and priced around $25,000 is a deal. Get back to the days of the $20,000 small sedan, the $25,000 Equinox, and the $50,000 Tahoe. I paid $61,000 before GM employee discount for my Sierra and it is only an Elevation with the V8…a Denali on the lot was about $15,000 more and the AT4X in the showroom was about $30,000 more. I heard there was a survey where 80% of the respondents said they can’t afford a new SUV or truck. GM and Ford need to start going back to their roots. Make solid cars that the middle class can enjoy, not just the rich.
You are 100% right about the Trax. It is a smash hit. It looks great and they are already all over the place. The Trailblazer seems to be doing well, also.
That’s why cancelling the Bolt EUV early is such a poor situation — there is a reason it is selling so well: people can afford it. I understand why GM is stopping sales of it (it loses too much money b/c of its old architecture) but the fact they don’t have a similarly priced model with the new architecture ready to go in 2024 is a failure by Barra & co.
Amen tim.
Just a few weeks ago it was reported gm’s atp’s were hovering around $54,000. And up until recently, gm’s management was giddily bragging about how high their atp’s were as if gouging their customers is some sort of badge of honor.
It’s not very funny, but when I started driving in the mid 70’s, pickups were cheaper than most cars and diesel fuel was cheaper than gasoline. My my how things have changed due to consumer whims. Today, people who live in subdivisions and have a regular job think they need to drive a 3/4 ton diesel pickup to look cool. And mom has the latest big SUV, but the kids likely don’t have college funds.
College is now covered by handouts! LOL. Thats what we have become. All the reall stuff should be free and all the gotta haves but not needed are what they spend their spare money on.
I wouldn’t be surprised if gm is not tryng to find an ICE or Hybrid vehicle to build here instead.
It’s probably too late for gm. These things take several years for these processes to play out and I think a few years ago, they made a really bad decision. Hopefully China bails them out this time.
It’s a shame, because to me, the E-Ray shows what could have been.
It’ll still happen because the product is engineered, most of the tooling purchased and a significant % of the capital equipment partially paid for and waiting to be delivered. We’re talking $ billions already invested. There’s no cancelling that without the BOD asking very serious questions.
gm took one look at the Ford Lightning struggling to sell despite price cuts. The just announced Lightning production cut was the clincher. That and the fact the gm truck was priced above the Lightning and gm balked. And rightly so.
I would not be surprised to see Blue Oval City delayed as well.
Ford already announced delays for the Lightning.
No body wants these things.. GM made a bad decision on their all EV future. Something’s fishy, when the very next day after an administration change they made that announcement.
What bad decisions did they make on their all EV Future? Last time I checked they still have ICE Equinox, Escalade, Blazer, etc coming out in parallel. If anything they’ve hedged their bets pretty well. Battery plants started being built before interest rates/cost went crazy. Look at the cost Stellantis and Ford are paying for their battery plants. They are reusing existing factories instead of paying billions more to build new ones.
Not to mention, the Silverado EV does not look like a truck. Even if EVs were selling this thing will be a niche player at best – just as the look-a-like Avalanche was.
EVs are selling quite well with a record number sold YTD – just not the $60-100k models from legacy OEMs. As of Q3 Tesla has already sold 498,000 vehicles in the US which surpassed Jeep (489,396), GMC (429,396) and Subaru (467,220) – let that sink in. The Bolt has propped up GM BEV sales and when that is gone, GM BEV sales will be sub 30k in 2024, even with these delayed trucks – that’s very little to show for the billions spent. It doesn’t matter that these trucks are superior to the Lightning in every way – traditional Big 3 truck buyers won’t buy them, leaving a small addressable market for them. Their largest market will be fleet sales which will be IRA subsidized. Currently, the Lightning Lariat is cheaper than the standard F-150 Lariat and still nobody wants it. The Cybertruck is even less appealing to traditional truck buyers, but it has vast interest beyond that market and will outsell the Lightning and the GM BEV trucks combined by at least 10:1 for years to come. GM has invested billions in their Ultium platform, still can’t scale battery production, and has yet to see any ROI. No surprise they are delaying these trucks – expect the same with the Equinox. While not as bad as Toyota, GM way over promises and under delivers when it comes to BEVs.
You must be in CA because EV adoption in my state is minimal. I drive 60 miles round trip to work each day around a large city and I see maybe two EV’s per day. I’m an observant car guy so I’m looking at what’s on the road. The most prevalent new vehicles I see are Silverados.
I’m in SLC and EVs are quite common here – Teslas are ubiquitous, it’s not uncommon to see 10 or more RIVIANs on my way to or from work – I even have a neighbor with the unicorn – a HUMMER EV. Anecdotal data aside, hard numbers is all that matters. Your point is well taken – in California, by far the largest US auto market, Tesla outsold Toyota in Q2 this year – the first time Toyota has been surpassed in California since the 80’s. Tesla had 14.6% vs Toyota’s 14.2% market share – that equates to 1 out of every 7 cars sold is a Tesla. Keep in mind Toyota typically outsells Chevy + Ford in California. I understand, by default nearly everyone on here hates Tesla, but they are crushing Toyota and Honda in their most important market. Over 70% of their conquests come from Toyota, Honda and BMW.
You said nothing but truths and a few people give you thumbs down. Some people here just can’t stand to hear the truth.
I try to provide facts and numbers don’t lie – Most of my posts regarding Tesla or BEVs are not taken well as most commenters simply hate BEVs or Tesla regardless of achievements. I travel a lot and see the looming threat from Chinese BEV makers – None of the Big 3 is remotely equipped to compete once they start assembling them in Mexico and use NAFTA to backdoor into the US and undercut Big 3 offerings by $20k and still be eligible for the IRA $7,500. Their only hope is to continue selling ICE trucks, but that will evaporate under upcoming CAFE standards – only Tesla and some Asian transplant automakers are equipped to survive. All of this is occurring as all three continue to rapidly lose market share in China further suppressing profits and economies of scale. Jeep already declared bankruptcy in China and Ford continues to drastically scale back. Add in UAW demands and I honestly don’t see any light at the end of the tunnel. Even if GM installed competent management today, I’m not sure they could steer clear of the iceberg.
I have a feeling US politicians will figure out a way to keep Chinese vehicles out of the US.
What is SLC?
I bet a dollar this has to do with Tesla’s soon to be delivered CYBERTRUCK. GM saw what happened to Ford’s Lightning and they are scared.
LOL, they can build them but they can’t make us buy them.
So, GM still producing/planning to produce some Silverado EVs at Factory zero but not expanding its production at the Orion plant plus not producing the Sierra EV which was going to be produced only at the Orion plant? Or is it that the all the Silverado EV production has been delayed?
GM is going to build the Silverado, Sierra and Hummer EVs at Factory Zero, that was always the plan. Orion was an expansion plant for the Silverado and Sierra EVs. Probably to make room for the Escalade EV at Factory Zero.
For 2024 Factory Zero was always going to be the source of GMs EV trucks/large SUV EVs. The only difference this news makes is for most of 2025 it will still be the only source.
All clear now, thanks a lot 🙂
I’m betting that this has more to do with the fact that the Bolt models have picked up and are not showing signs of slowing down. This is (finally) a sign that buyers are voting with their money and it’s affecting them (GM and Ford) with slowing in some higher priced vehicle areas such as the F150 EV and Hummer EV’s, etc. while sales increase on the Bolt, Trax, Envista, Malibu, Trailblazer and so on.
This country can’t continue with stupid high payments of $1,000 to $1,300 per month, not including charging or gas!! So it looks to me like GM is backing off the EV trucks that will be way too expensive for now and will attempt to meet demand of the lower priced vehicles for now.
There’s only so many idiots who will pay 1000-1300 a month plus insurance.
Tell me you do not know how to shift to EV’s and the Tax Payers will be bailing you out again by 2030 without telling me.
I vividly remember being made fun of on this site when I used to say that Tesla will eventually leapfrog Legacy Automakers. This is terrible news for the American Auto Industry as a whole. We cannot have Tesla (whether I like their cars or not) to become basically a Monopoly.
Also, now it became extremely vital to keep the Chinese EV Automakers from entering the market for as long as possible and flood the market with vehicles that will have extreme value compared to their Segment.
Ford might go Bankrupt for the first time ever by 2030 as well. They can’t figure out BEV’s either.
Just read that the first two years of their Mach-E vehicles might need to be fixed with a major Flaw (Not sure if the report is accurate) Does anyone know if this is true?
Hey May, do you still think Elon is a Silicon Valley nerd playing with Laptop Batteries? (Unbelievable)
Get rid of ALL Top Management and bring in people that are competent and understand the new ways of the Auto Industry and do so ASAP….cannot keep letting Mary skate by this long. This is becoming extremely embarrassing.
And I have been a proponent of keeping her all these years but obviously the Industry has passed her by. She is scrambling in this monumental Automotive Industry shift.
Bring in replacements with fresh perspective with real knowledge.
Momolos: I agree. I’d add something to that mix however. GM seems to have a really bad habit of not being able to stick to something. This has been going on for decades or longer! I’m not asking others to agree with my examples, but here’s a few that they have done and when the wind began to change direction, they dropped like a bad habit.
Cadillac Cimarron, Allante, XLR, ELR. Buick Reatta, Buick cars and Buick names. The 5.7 and 4.3L diesel engines. The V864 engine. All Cadillac names. And that’s just a small example. They try something, do it all wrong at first and then drop it. Or like I said, the wind changes direction and they change their minds.
They must create a plan, execute it correctly and stick with it.
You’re both correct – GM is so short sighted and eliminates great vehicles/drivetrains just as they are about to be profitable. The first gen Prius lost a lot of money, Toyota improved it and by the very end of gen 2 production it was becoming profitable (this is where GM would pull the plug), then they expanded the hybrid tech to nearly every car and have made a lot of money directly and indirectly by reducing CAFE. Imagine if GM did that with the superior Volt architecture. I’ve owned ~15 GM cars over my lifetime (starting with a 75′ Vega GT in 1984) with my 2020 Colorado Duramax ZR2 likely being my last. This company lost its way years ago with its preoccupation on short term gains (China) and inability to stick with anything but full size trucks. Exactly 1/2 of GM’s US sales come from body-on-frame trucks, that accounts for nearly all of their US-based profits – throw is escalating CAFE standards, their inability to scale Ultium batteries, UAW demands, and GM is screwed. In the short term, GM is doing great in the US this year as GM US sales will surpass China sales this year for the first time in years – as China sales have gone from over 4M in 2017 to ~2M in 2023. I hope GM survives, but this is a very competitive, global automotive market and I have little faith in current GM leadership that has reigned during the decline from 10M sales globally to less than 6M now. Hyundai-Kia now sells over 7M globally on their way to surpassing VW as #2 in the next year or two and they easily outsell GM in terms of BEVs in the US (not even counting the Kona and Soul BEVs), largely without the benefit of the IRA – they are nimble and will have plants online in the US in 2024, making their compelling BEVs eligible for the IRA rebate negating GM’s advantage. Meanwhile, GM kicks the can down the road while the clock is ticking and other foreign automakers are rapidly building plants in the US.
@mvb
I agree.
In the US currently GM is doing very well but how long will that ride last?
People can hate EV’s all that they want but it is a done deal, they will be what is left standing in the Future. Whether we like it or not.
Tesla will knowingly lose money (they admitted it) on the Cybertruck for close to a year because they know once scale hits it will be a profit making behemoth.
Unfortunately GM does not think long Term and this is why I fear for the Big Three.
As I stated they need new visionary leadership.
@Dan B
I agree that GM is bad at sticking with things in it s history but this shift to EV’s is not a fad.
This whether we like it or not is going to be the future of the Automotive Industry World wide.
GM is scrambling trying to figure it out and it is most likely not going to end well. They seem clueless and that is an utter shame.
Our future Economy is at stake. The so called Big Three better figure it out and do so ASAP.
I am hopeful they will figure it out but I am definitely not convinced that they will.
China is building a humongous automotive Industry and they do NOT want to just stay in China.
Them figuring out how to build BEV’s at mass scale is extremely vital.
People will not want to hear this but if GM and Ford go down, all we will really have left is Tesla.
Just let that sink in to all of us the GM fans!!!
You’re not wrong.
by the time EVs catch on the ones in the pipeline now will be obsolete and need redesigned.
@motorman
You mean the EV’s from GM correct?
How would GM know if demand is less for electric vehicles since they don’t have any on their lots? I watch my local GMC, Buick and Cadillac dealer on a weekly basis. Last week was the first brand new EV I have ever seen in stock and for sale. It was the 2024 Cadillac Lyriq. Hope I spelled that right. The list price was $68,000. The car looked pretty nice, but I wasn’t thrilled with the front grill area. Looks like they don’t quite know what to do with the front of a car that doesn’t need a grill. Perhaps they could take some styling tips by looking at the old Corvairs.
Every time an EV is mentioned on here the usual horse and buggy guys jump in with their negative comments. As slow as it may go, alternative fueled vehicles are going to be a part of our future. Have you noticed people want to move away from the equator? There is a reason for that. It’s too hot. You can have 99 scientists say fossil fuels cause global warming and one that says it doesn’t yet the split of public opinion will be about 50/50. How did we get so cynical? Is this about global warming or jobs in the fossil fuel industry? My guess is the latter. I see alternative energy sources as good competition for the petroleum industry’s long held monopoly on how we travel, heat our homes, etc. Why would your average citizen be afraid of that? Competition is good. We have way too many monopolies in this country as is, and until recently hardly any progressive anti-trust law enforcement to break them up. That is because the people with the monopolies also buy the politicians that make the laws.
Not afraid of alternative energy, just don’t force everyone to buy into it. All we want is the option to make our own decision on it. When the “experts “ tell us we need to buy into the EV , then fly across the world in their private jets to these boondoggle climate meetings, that’s just not right.
Expected, GM is not going to make many electric trucks since ehummer is just a low volume seller.
And GM has to keep making Bolt if they want to sell EVs in high volumes.