Production of Ultium Drive components at the GM Toledo Powertrain plant in Ohio will now start three fiscal quarters, or nine months, later than originally anticipated as The General pumps the brakes on the project in the face of weaker-than-expected demand for EVs.
GM now plans to have the Ultium Drive production line fully tooled up and operational by the fourth quarter (Q4) of 2024 rather than in Q1, The Toledo Blade reports.
The Ultium Drive motors built at the plant will be used in several electric trucks and utility vehicles. These include the currently in-production GMC Hummer EV Pickup, the GMC Hummer EV SUV and the Chevy Silverado EV. However, several upcoming models should also get their drivetrains from Toledo Powertrain’s output, including the GMC Sierra EV and the Cadillac Escalade IQ.
The General decided to push back the start of Ultium motor production in Toledo because it is also delaying the launch of the Silverado EV RST and Sierra EV. Start of regular production (SORP) for the Sierra EV Denali has been moved from early 2024 to summer 2024. Additionally, while Silverado EV and Sierra EV units will be built at the Factory Zero plant in Michigan in 2024, planned production at the Lake Orion plant has been postponed by a year to calendar 2025.
The Toledo Blade claims the revised scheduling across the board results from considerably weaker-than-expected demand for EVs. Other sources corroborate the claim while noting electric pickups are currently experiencing even lower demand than regular EV models. Notably, cross-town rival Ford announced its intention to halve production of its F-150 Lightning EV pickup trucks this week.
Those tasked with converting a production line previously making six-speed transmissions to Ultium Drive motor manufacture say the delay is welcome. The additional time will enable doing a more thorough and better-tested job of conversion and retooling. “We pride ourselves on having great launches and the extra time always allows for the best launch possible,” Tony Totty, president of UAW Local 14 at Toledo Powertrain, said.
The retooling is part of a $760 million investment in Toledo Powertrain for EV drive unit production that The General announced back in 2022.
Subscribe to GM Authority for more GM Toledo Powertrain news, GM business news, GM electric vehicle news, GM technology news, and around-the-clock GM news coverage.
Comments
Wow, as predicted, Mary’s in pretty deep without a life jacket. Too many eggs in the wrong basket!
That’s what happens when you take an “all or nothing” approach. Even Farley at Ford admits that he was wrong in his EV predictions and is adjusting the vehicle roster accordingly.
Who can afford these overpriced Ev’s that no one wants?
This is what happens when nobody wants these ev trucks.Mary has got to go and get gm going in the right direction and away from the Biden crowd!!
Been waiting for a new battery for weeks now with my Lyriq
.
Hope they build a new one before the identical battery in my Lyriq loaner wears out!
Why Isn’t GM developing Hybrid and PHEV vehicles. This seems to be way to go before forcing all electric vehicles to the market.