GM has announced that it will delay to the launch of three all-electric products, namely the Chevy Equinox EV, the Chevy Silverado EV RST, and the GMC Sierra EV Denali. The announcement coincides with the release of GM’s third-quarter earnings report and updated 2023 financial guidance. For the moment, none of GM’s all-electric vehicle plants have been idled as a result of the ongoing UAW labor strike.
“The [software organization] team is optimizing the software strategy in fine-tuning the plans for our new vehicles to help make sure we execute with the highest possible quality and customer experience while positioning the company to drive significant revenue growth from subscriptions in the future,” Barra said during the presentation.
As GM announced early last year, the automaker plans to roll out roughly 50 in-vehicle digital subscription services by 2026. The services will be based on GM’s new Ultifi software platform, with estimates that new paid connected features could generate upwards of $25 billion in revenue annually by as early as 2030.
“To give the team time to do this, we’ll move out the launches of three products – the Chevrolet Equinox EV, the Silverado EV RST and the GMC Sierra EV Denali – each by only a few months,” Barra added in reference to the products’ software optimization strategy. “This will ensure their success.”
GM says it still plans to have the capacity to build 1 million EVs in North America by the end of 2025. However, the automaker is now pulling back on some of its EV production expectations and no longer expects to build 400,000 EVs in North America by mid-2024. Production of the Chevy Silverado EV and GMC Sierra EV at the GM Orion Assembly plant has been pushed back to late 2025.
Nevertheless, Barra says that costs to build the the company’s EV products are quickly falling, including a 45-percent decrease to the cost of batteries in the last 12 months.
“We also expect to achieve significant margin improvement on our battery-electric trucks through engineering efficiency and improvements, supplier costs, and reducing order complexity, buildable combinations and manufacturing complexity,” Barra said.
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