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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