The Slow Ramp of General Motors’ New Electric Vehicles
General Motors CEO Mary Barra attributed the slow rollout of the company’s new electric vehicles to a supplier of automation equipment. This comes after criticism from Wall Street regarding GM’s efforts to catch up with industry leader Tesla.
Despite exceeding year-ago performance in quarterly results, GM’s stock dropped approximately 4% during morning trading on Tuesday. Analysts on the earnings call raised concerns about the company’s pricing strategies, profitability of electric vehicles, and ability to meet previously announced targets.
During the earnings call, Barra stated that the delay in production was due to delivery issues faced by the automation equipment supplier, which affected module assembly capacity. GM produced 50,000 EVs for North America in the first half of this year, mainly consisting of outgoing Chevrolet Bolt models instead of the new EVs that utilize the company’s “Ultium” batteries and technologies.
Barra expressed her disappointment with the unnamed supplier and mentioned her involvement in problem-solving and updating the automated lines. However, she remains optimistic about significant improvements in production by the end of this year, with constraints being resolved by then or sooner.
Despite the setback with the battery modules, GM still plans to produce 100,000 vehicles in North America during the second half of this year and reach a total production of 400,000 vehicles by mid-next year.
Barra emphasized that GM is committed to achieving its targets and mentioned plans for a next-generation version of the Chevrolet Bolt EV, following increased demand for the vehicle after significant price cuts last year. The new Bolt will incorporate technologies from GM’s Ultium and Ultifi battery and software programs.
Further details about the next-generation Bolt, including timing, price, and production location, have not been released by GM.
Reviving the Bolt
GM’s forthcoming EVs will include a next-generation version of the Chevrolet Bolt EV.
Production of the mainstream Bolt EV models is set to end by the end of this year, as GM plans to repurpose the production plant for electric trucks.
The decision to build a next-generation Bolt is based on increased consumer demand for the vehicle following significant price reductions last year, making it one of the most affordable EVs in the U.S.
GM will incorporate technologies from its Ultium and Ultifi battery and software programs into the updated Bolt. However, specific details regarding timing, price, and production location have not been disclosed.
