GM has announced that it is pulling back on its ambitions to build 400,000 EV units in North America by the mid-2024 calendar-year timeframe. However, The General says it is still on track to hits its goal of reaching an annual EV production capacity of 1 million EVs in North America by the end of 2025. General Motors has also detailed delays in retooling the GM Lake Orion plant in Michigan for production of the Chevy Silverado EV and GMC Sierra EV all-electric pickup trucks.
Details of GM’s future EV plans were provided by company CFO Paul Jacobson during the recent Q3 2023 earnings presentation.
“These actions will impact our previous EV production targets, including the 100,000 EV target we had for the second half of 2023 and cumulative 400,000 EVs from 2022 to the first half of 2024,” Jacobson said during the presentation. “We are not providing new targets, but are moving to a more agile approach to continually evaluate EV demand and adjust production schedules to maximize profitability.”
General Motors previously announced during its Q4 2021 earnings call that it planned to produce 400,000 EVs by the end of 2023. The company later pushed that timeframe back to early 2024, attributing the delay to a slower-than-expected ramp-up in the automaker’s battery and cell production. Now, it looks like The General has abandoned the 400,000 EV units production goal outright.
Regarding the delay in retooling at the GM Orion plant for Silverado EV and Sierra EV production, Jacobson said the following:
“Given a more agile approach to our EV transition, we now expect to retime at least $1.5 billion of capital spending at our Orion plant, implement engineering improvements, and improve EV profitability prior to accelerating production of battery electric trucks. We will provide more detail around EV profitability once we have clarity on labor costs.”
Initial production for both all-electric pickups takes place at the Factory Zero plant in Michigan.
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– The Bolt EV and EUV will stop production at the end of this year, even though they (finally) seem to have gotten the production/battery issue worked out
– The Equinox EV has been pushed back to (at least) Q3 2024; it has been positioned as the “low-cost” replacement to the Bolt (even though it will cost at least $10,000 more)…at least until the Bolt Ultium comes along in 2025 or so
Do I have that right? So GM will go without a lower priced EV for at least 6 months? In a market where price sensitivity is starting to become a big issue as the market for $40,000+ EVs has become saturated.
Excellent work, Mary. Top notch.,
Rob P: Hey, at least they have the 100 grand and higher big fat porker Hummer to sell. haha. You know, because there’s so many just waiting to drive a 9,000 pound massive turd around acting like they are being “green”.
That Hummer will take a lick in’ and keep on……..Breaking Down!🫣……That’s due to the fine OEM GM parts that are pouring out of Cheena!…Pay More!…Get less!!!…Screw Chinalet General Motors…I’ll never buy another Chinalet
Corvette ….I’m on my 3rd vette in 40 years and my last GrandSport 2017 is by far the worst in every way…I Think some rice and fish heads just fell out of the exhausts last week!…I replaced ALL my defective Wheels due to apparently my bad driving habits….TWICE!!…Junk by another name is pronounced
Chinalet Korbette….Hummer people….I feel for 🫵‼️🥷🏻🚧
You said a whole bunch of nothing….
What? Rice and fish ears fell out of your exhaust…..really. Get some help.
I wonder how fast GM will run through the “gotta have one” buyers with more money than good judgement. The electrics are replacing models that cost far less than the E cars. The electric infrastructure just isn’t there to make a switch at rate far above the market’s ability to absorb/afford them.
My guess is that they have already run through the “gotta have one” buyers by now. I think all of the automakers have.
It is insane how much more the EV’s cost over their ICE sister vehicles.
–The new EV Blazer 2LT AWD starts around $58,000 vs an ICE Blazer 2LT AWD with the 2.0L Turbo which is around $40,000.
–The new Silverado EV 3WT costs around $75,000 vs a Silverado Custom 2.7L Turbo with some options go for around $50,000.
Does it make people feel better by spending $15,000-$30,000 extra at 8%-10% interest to never visit a gas station? At $3.24/gallon as of this morning, you can buy 4600-9300 gallons of gas with that money. If your ICE vehicle gets 25mpg combined (in the case of the Blazer), that is between 115,000 to 232,000 miles or the equivalent of 10 to 19 years worth of driving (at 12,000 miles per year).
I think you’re right of course. It’s obvious to all. Except Mary of course. She’s just about ready to jump ship because it’s sinking from the dead weight of these EVs
By the way, the prices are actually way further apart than shown between ice and EV. I’m positive that GM is losing 30k on all these blazers et al.
When the suckers buying these are all gone, the EV plants will be hugely expensive to run underutilized.
Oh, it’s too late to build hybrids like toyota, everything’s converted to EVs at GM..
Remember. Mary runs the show.
no worries. mary has a 300k electric cadillac for you instead! in fact, a few of them! and the very frugally priced 150k hummer ev.
line up!
GOOD! More V8s and V8 hybrids please. I’d LOVE to see some awd V8 hybrids, especially in a Camaro and pickup truck. If it takes E-fuels to keep V8s running, great, bring on E-fuels. We need energy OPTIONS, not to have a one size fits all EV future shoved down our throats via govt.
Few people actually want V8s anymore outside of trucks and SUV owners. They’re just not fuel efficient. Even those Truck and SUV owners are buying more V6 models than ever before.
Ford, GM, and Stellantis aren’t just cutting them for fun. Customers are just not buying them like they used to.
That’s ok, there is still plenty demand to have V8 OPTIONS in some vehicles. That is all I’m asking for. I’m not trying to mandate everyone in the world buy a new V8 powered vehicle.
People are not buying V/8s because they are not offered in smaller SUVs not because they don’t want one. I own 6 V/8 cars and kiss them every time I open the hood.
When I bought my Sierra this summer, the salesman was pushing the 2.7L Turbo trucks. I asked him what the mileage was and he told me it gets around 20-22mpg on the highway…essentially the same mileage as the V8, so I went with a V8. If the 2.7L got around 25mpg or more on the highway, I might have looked closer at it. My truck usually gets around 21mpg on the highway, so I am happy with that.
No true at all. Completely untrue. Most profit and volume is V8 platforms for all detroit 3 aka big three before wokeness. Ford eco turd v6 excepted.
The majority of GM profits come from v8 powered vehicles. Period. Nothing from EVs Very little from anything else but China and gmac, I mean ally, er GM financial
Too late. Gone fill out for EV’s.
These products have been left to die. GM hasn’t put any money into hybrids in a long time.
Left that market to Toyota.
Sometimes lately, I feel like us enthusiasts and our comments are actually running these companies. Because most management is brain-dead and need us. Wasn’t it yesterday that they said 1 million by 2025 and we all laughed?
I do hope that someone in the auto industry takes a look over at the entertainment/media industry and sees what is happening.
Disney, Marvel, Lucasfilm, Warner Brothers, Netflix, streaming, etc. It’s case study after case study of bad business decisions; thinking you found the next big thing, leaving your core customers (and sometimes literally telling your core customers to piss off) chasing after a new market that is smaller than you think it is with already entrenched market leaders, bad marketing, listening to bad data, etc. etc. You should NOT abandon your core customers for a new customer base, especially since that new customer base’s size has been artificially inflated in numbers and artificially amplified in voice by social media companies using “algorithms” and bias. Bad data in = bad data out. By all means, expand and go after new customers, but don’t ABANDON you core customers, many with decades (or even generations) of brand loyalty.
Mary Barra should be aware. She’s on the board at Disney, which is struggling lately.
The push to EV is frustrating. Most of us cannot afford EVs. Even with a government credit of $7500, most of these EVs start in mid $40k. I cannot understand why one would buy an EV other than for status or environmental signaling. A base civic starts at $24k. A base model 3 starts at $39k ($32K with gov’t refund). That’s a huge premium. And a 10 year old civic will retain significant value. My 8.5 year old accord is currently worth about 50% what I paid for it.
It’s not a government credit for evs. It’s taking tax money from one and giving it to another.
The government has no money. It came from your pocket and mine.
No, it’s a credit against taxes owed. If the purchaser only has a $3500.00 tax liability that is all he/she would receive as a credit. No money out of your pocket or anyone elses.
However the government loses out on that revenue further adding to our yearly deficit and mounting debt.
I totally get the valid concern and debate about the credit and taxes. Let’s not ignore the fact that the government is also working to push gas prices higher (see gas price trends since Apr 2020; google “gas prices over time” and check out the EIA graph). Instead, I am purely considering the net dollars that one would have to pay for a new vehicle.
My point is that even with a $7500 rebate, the value proposition is still not there. How much subsidization is enough to force us to buy EVs?
The US continues to directly and indirectly subsidize the oil industry. In 2022 (yes, even under the current regime) that amount was $20.5B ($14.7 billion in federal subsidies and $5.8 billion in state-level incentives) to support activities like exploration, extraction, and development in the form of tax deductions and exemptions. In addition, another $14.5B was used on the consumption side to cover payments for home heating oil, etc – think low income families. And let’s not forget the estimated $81 billion that the U.S. military spends to protect oil supplies around the globe, including the direct military spending on things like protecting oil shipping routes and maintaining troops near strategic oil-producing locations. Combined, these subsidies (not even counting the indirect subsidies) easily cost tax payers well over $100B annually. Renewable energy subsidies remain a small fraction of this even with the Biden IRA. I hate all subsidies and don’t believe the US government should be picking winners, but I do understand why they do it. The US and west run on cheap energy – period. Our economy depends on cheap reliable energy. Take that away and the economy (and society) will tank pretty fast. The renewables’ subsidies is the government hedging bets to sustain cheap, reliable energy if you look at it from a broad perspective – and yes, because most of our government officials are corrupt and have a price, we will continue to see obviously biased laws/incentives favoring companies/industries.
As far as your inability to comprehend people owning BEVs – its personal preference for me, but cost of ownership is way less for a BEV. A Model Y LR will cost a little less to own than a Toyota RAV4 over 5 years including fuel/maintenance costs with the $7500 tax credit. I’m no greeny and don’t care about CO2 emissions or global warming AT ALL, but I do have solar panels and a Model Y and pay $0 for electricity – yes there was an up front cost, but it pays for itself in < 10 years where I live. Once you drive a BEV, its hard to go back to ICE – I still have a 2020 Duramax ZR2 I off-road with frequently. I take cross country trips with the Y and its seamless. I don't care what people drive and most people on here will continue to hate on BEVs as they are being 'forced' upon us. As much as I think our current leader is a senile, blundering fool, I believe the IRA was a crucial achievement to bring investment in the US for the complete production of BEVs. I travel a lot and see how cheap Chinese BEVs (~$14k) are decimating Toyota (and other Western OEMs), not only in China, but 3rd world countries like Thailand, as well as Europe. The IRA buys the Big 3 protected time to get their sh!t together before the wave arrives. Americans are not very brand loyal and will choose cheaper 99% of the time. As far as the CAFE standards which will destroy the profit making ability of the Big 3 – I don't believe they should exist – I loved my Challenger Hellcat and this killed it (the additional $1700 gas guzzler tax didn't help).
“A Model Y LR will cost a little less to own than a Toyota RAV4 over 5 years including fuel/maintenance costs with the $7500 tax credit.”
I’m going to call you out on this. Can you elaborate?
Rav4 starts at $28,475
Model Y LR starts at $48,990 (after govt rebate $41,490)
Difference = $13,015
Forgetting sales tax at time of purchase (for most states), insurance rates and depreciation.
Is the difference in fuel (vs electric charging) and a few oil changes $13k?
Let’s say 10 oil changes over 5 years at $100 each, so $1000.
That leaves $12k in fuel (assuming electricity is free, which it is not). At $3.40/gallon, that’s 3529 gallons. I think that’s unrealistic.
Just for perspective, I’m dead set against Gov’t mandating of EV’s and killing off V8’s! It’s overreach.
For more perspective, I’m on my fourth year with my Model 3 P. Two sets of tires, and virtually no other maintenance. My work has free charging, and we have a zoom group to share it. to add 100 Miles cost me $8.90 at the supercharger near my house, it took 11 minutes. If you have the right situation an EV is great, but honestly, not for everybody. That’s what the Gov’t should be keeping in mind.
“No money out of your pocket or anyone elses. However the government loses out on that revenue further adding to our yearly deficit and mounting debt.” Really????
Where do you think it comes from when the “government loses” by choosing not to collect tax that someone owes, or forgives what they owe as a reward for buying something? It’s money that comes out of my pocket and yours, while that EV buyer avoids “paying their fair share”, as the left so often likes to say.
Every time the government gives away money, they’re giving away OUR MONEY. The government doesn’t make money on anything, they don’t provide a service for fee or sell a product. Every penny that goes to the government comes out of the pockets of it’s citizens. When they chose to give it away so someone can buy an EV, or payoff a lawyer’s college loan, or a build bridge to nowhere, it comes out of our pockets and becomes money they don’t have to spend on things they should. Wake up! The EV tax credit costs all of us!
Gee, I must have missed that line on my 1040 that said add X amount of dollars to your tax liability so we can give it to EV buyers.
Using the SWAG method one can conclude you’re anti EV and tax forgiveness for purchasers, and against the tax dollars spent on the hiring of IRS agents to go after tax cheats.
No surprise, GM has whiffed on EVERY BEV promise as they will continue to kick the can down the road. GM’s stated BEV goals were always theater to appease investors, Biden administration and environmental activists to get some green cred. They never fully committed to it and Ultium has been a disaster. In the short term, GM will free up resources for its ICE vehicles and should be able to ramp up following the UAW strike and salvage 2024 with decent sales. 2025 is where it will get interesting as that is the next increase with CAFE standards (55.3 for cars and 39.3 MPG for light trucks) – GM is clearly trying to time BEV deliveries to coincide with this to reduce fines. Why sell BEVs in 2024 when losing money on every one sold and the fines are manageable. GM is counting on a hail mary onslaught of BEVs in 2025 while continuing to build out the infrastructure to support this in 2024. 1/2 of all of GM’s US sales are from heavy (low MPG) body on frame vehicles, therefore they will need to be ready by 2025. I actually agree with GM’s approach here – they will take a lot of heat for this, but its the solid business move (walking away from Cruise would be the other wise move) – who cares if they end up in the 4th or 5th spot for US BEV sales in 2024 as they trickle out Lyriqs and Blazer EVs.
To say I’m disappointed is an understatement. It’s clear the auto manufacturers were pushing too hard to bring out a product that is too ambitious. The federal and statewide mandates designed to spur manufacturers on don’t help either. News like this confirms my view that the companies taking their time to produce EVs will fare the best. We are still in the very early stages of competition.
I am not disappointed ………..nor surprised. Those ambitious EV goals always looked more political than realistic.
GM’s greatest miscalculation was to skip over the hybrid market. Of course, they screwed the pooch on hybrids by their cheapo mild hybrids of the 2000’s. Meanwhile, Toyota hybridizes everything and sells tons of them. Sometimes ‘moonshot’ goals are the wrong approach and a more incremental, step-by-step strategy is wisest. After decades as a member of the GM family, I’ll be getting a PHEV. Needless to say it won’t be a Chevy, Buick or Cadillac.
A hybrid can take advantage of the best of PEV and ICE, plug it in every night and run on electric only for short commutes. The hybrid ICE takes over and fills in the gaps for longer drives, and takes advantage of the short fill ups instead of hours long recharge. For trucks this is a no-brainer and right now, Ford is the only one doing it with the F-150. If they (or GM) had it on a HD truck, I’d be interested in a heart beat.
If I was in the market for something other than what we bought last year, a hybrid might be considered, as long as the price was comparable to ICE. A full EV just doesn’t work unless you only do close driving.
GM: First to announce (“Ultium!”) Last to produce (zzz…..)
The headline should say G.M. has a moment of clarity…but just a moment.
Did Detroit learn nothing from watching Tesla struggle to get to volume production? Tesla is on to working on reducing production complexity and costs. Detroit may never catch up entirely. UAW pay is going to make Detroit the high cost EV producer.
Didn’t I read about a new GM V/8? HERE IT IS IN AUTOWEEK FEB 2023, WE WILL ALL BE SAVED
General Motors is investing $854 million into its small-block V8 production facilities to prepare to launch the sixth generation of this venerable engine.
This announcement came after a report of a failed battery factory under the LG partnership.
The sixth-generation engine is expected to make more power and be more efficient than the engine it replaces, but details are not yet ready for release.
Yea!!!
I’ll put this in as simplistic of terms as I can…think of GM as the eqivilant of the US Government. Bloated, out of touch with reality, run by a CEO that mimics the President of The United States. Both this countries President and GM’s CEO have been making bad decision after bad decision, the factions they are both responsible for, are today “in the toilet and heading down the drain”. These two “Leaders” (sic) have caused more problems and made more mistakes than anyone that came before them, they both are arrogant, and will lie right to your face, exclaiming that “everything is just fine and we’re on course for Greener World if you just do as I say”! Ms. Barra, may I introduce Mr. Biden, the two of you both have a lot in common and have managed to destroy what was once the most profitable of businesses and countries the world has ever known! And now…we’re all going to see what happens when someone with out any idea of how to sucessfully run a business and sucessfully run a country with the end result (if both don’t change their course of direction right now) being a total disaster for both General Motors and The United States of America for as one goes, so shall the other. You just “hide and watch”…it’s a matter of time now as both the CEO and President have shown their inabilities to be helpful to their business and their country. Two birds of a feather about to find out what happens when you’ve made just one mistake too many in todays fast pace world. ‘Nuff said, Good Luck GM and Good Luck to Washington DC’s Current Administration, you’re both going to need all the luck you can muster when every America finds out the truth about your total lack of sincerity and you’re total inability to make America a more successful Nation. I’ve had it with the both of you, why don’t you both just quit and find someone else who understands the importance of “America Comes First”, not yourselves!
Your comment would hold more weight and be received more positively had the biased political diatribe been omitted.
GM is a for profit company. I hope they have figured out the long term benefits of BEVs as opposed to the short term benefits of PHEVs. I am on my second PHEV (Chevy Volt first, then Cadillac ELR). As a consumer, they are terrific. I run on electric about 80% of the time, which is very cost and maintenance effective, but I can travel long distances on gasoline. I am not sure how an auto company makes money on PHEVs though. Fundamentally they have two powertrains. Doesn’t that cost a lot more to build? PHEVs have never successfully sold for a much higher price to accommodate that cost differential. I am guessing that GM gave up on the Volt because it was tired of losing thousands of dollars on each one.
If you are most interested in driving at low operating cost, a PHEV is great, but they aren’t great enthusiast vehicles. BEVs on the other hand, offer phenomenal accelerative ability compared to almost anything with a gas engine. Tesla figured this out long ago. A $50,000 BEV can accelerate about like a high performance Camaro or Mustang or almost as quickly as an $80,000 Corvette yet operate at pretty low cost for the 90% of the time you aren’t able to use those great abilities. Face it, we love our V8 roar and push in the back but most of the time we are in traffic and can’t experience those abilities. The BEV is sort of the best of both worlds in that regard.
The $53,240 Model 3P has an 11.5 second quarter mile time and the ‘base’ $76,340 C8 Corvette Stingray 1LT with Z51 performance pack achieves an 11.2 second quarter mile. The Tesla Model S Plaid is $89,990 with 1020 HP, 0-60 in 1.99s, 9.23s quarter mile and a top speed of 200 MPH. The ‘base’ C8 Z06 Corvette starts at $114,395 (before any options or stealership markups, ATP=$162k) and has 670 HP, 0-60 in 2.6s and a 10.5 second quarter mile time with a max speed of 195 MPH. The C8 is an awesome car and remains the bargain ICE car when it comes to bang for the buck, but the Model S Plaid is the better performance value. Of course the Corvette is lighter (3,774 lbs) and handles better than the Model S Plaid (4,766 lbs) and also has a faster Nurburgring track time of 7m 12.64s vs 7m 25.23s for the Plaid. For comparison the fastest BMW M3 ($120k, twin turbo 3.0L with 546HP) recently went 7m 28.76s.
I wish we could have a civilized discussion without you guy’s bringing politics into this. These Republicans and Democrats are literally all bought and paid for by lobbyists yet you guys pick sides and argue with other in defense of these people which is exactly what they want. It’s not Republican vs Democrat. It’s us, the working man, vs them. Stop fighting and bringing each other down all the time, we’re on the same team idiots. The saying goes “together we stand, divided we fall” and as of right now this country is as divided as it’s ever been and the only people benefiting from it is the are politicians and their rich buddies. Some of you are too far gone so it’s pointless trying to talk sense into you.
What a waste. Mary Barra continues to blunder her way as CEO.
She closed Lordstown to make 25 EVs by 2024. Only now years after Toyota, she realizes EVs are not the answer. Hopefully someone pulls the plug on Mary before she drives GM to another bankruptcy.
Wow, is the message finally getting through, most people don’t want EV’s!!! Like I have said from the beginning, listen to your customers not the government!
Carl,
Is it possible that from the perspective of top of GM management Ms Barra herself believes in the need to transition away from gasoline to electricity? That she sees the impact of air pollution and the other effects of carbon-based fuels as something that needs to be resolved? That not only the US government, but the Europeans, Chinese and many others are reflecting the needs and desires of their people in providing a cleaner mode of transportation? If those ideas are simply too hard for you to accept, then you’re drinking someone’s Kool-aid.
It merely transfers the emissions from the tailpipe to the smokestack. Today’s ICE tailpipe emissions are cleaner than power plant smoke stack emissions. Total green energy is an impractical pipe dream. Sorry for the reality check.
More people bought Evs than they ever have before in 2023… This has nothing to do with people wanting EVs, it’s moreso GM’s inability to mass produce EVs. Look at the Lyriq, it’s year two and they still can’t streamline the production of those things. Mary was simply too ambitious with her goals and put way more pressure on herself than necessary. This is why you don’t make bold claims. In the end you end up looking untrustworthy.
We don’t want EVs
Resolve the air pollution by destroying the company? I do t see the other automakers using that philosophy.
I think the wheels are falling off of the EV train to nowhere.
Good. GM should get back to building hybrids! I’d buy a hybrid before I buy an EV. All day. Follow Toyota GM.
Does it make anyone else angry that the prices of gasoline powered cars have been artificially inflated to make EV’s appear more viable? This is market manipulation at its finest, based on pseudo-science, to push a product that is not at a stage of development that is market ready. It really discredits GM’s management that they took this path.
I agree with your statement. I used to think that Mary knew what was going on. Not anymore.
I am crying in my beer just when I was going to trade in my 22 C8 and Tahoe to go all-electric, I get this bad news. I do love the warm Michigan winter weather this year. All because of global warming, So I have been starting them all up and just letting them idle in the backyard so that the warm winters will continue.