Summary
- General Motors is delaying the retooling of its electric truck plant in Michigan until mid-2026, impacting its goal of producing 1 million EVs by 2025.
- Buick’s first EV and the full transition of the Buick brand to electric vehicles by 2030 are also facing delays.
- GM is committed to growing profitably and responsibly in the EV market, but concerns have been raised about reaching production capacity targets.
- The company is focusing on increasing cell production and scaling its current facilities in Ohio and Tennessee.
- GM’s U.S. EV deliveries increased by 40% in the second quarter, but EVs still only make up 3.2% of total sales. The company aims to produce between 200,000 and 250,000 EVs in North America this year.
Article
General Motors announced a delay in its plans for all-electric vehicles, including a second U.S. electric truck plant and the Buick brand’s first EV. The retooling of the electric truck plant in Michigan is now delayed until mid-2026, impacting GM’s goal of reaching North American production capacity of 1 million EVs by 2025. CEO Mary Barra emphasized the company’s commitment to responsible and profitable growth during the second-quarter earnings call, acknowledging concerns about hitting production targets.
Buick’s first EV, originally scheduled for 2024, has also been delayed. The brand aims to become fully electric by 2030 as part of GM’s plan to exclusively offer consumer EVs by 2035. These delays raise questions about GM’s future plans for battery cell plants, beyond the two current joint venture facilities with LG Energy Solution in North America. Barra mentioned the company will grow cell production in a “meaningful cadence,” but declined to discuss potential delays or cancellations of future EV battery cell plants.
Despite the delays, GM saw a 40% increase in U.S. EV deliveries during the second quarter, reaching 21,930 units. However, EVs represented only 3.2% of total U.S. sales for the quarter. CFO Paul Jacobson stated that the company aims to produce and wholesale between 200,000 and 250,000 all-electric vehicles in North America this year, with about 75,000 units wholesaled in the first half of the year. Jacobson reiterated GM’s goal of reaching profitability for EVs by the fourth quarter.
GM’s focus on scaling up assembly to increase EV production is essential for achieving profitability on a production basis. Jacobson emphasized the importance of customer demand in guiding the company’s decisions. While GM remains committed to its goal of making EVs profitable once output reaches 200,000 units, additional EV sales are expected to impact earnings as they offer lower margins than traditional gas models. The company’s efforts to ramp up production and meet consumer demand for EVs will be crucial in achieving long-term success in the electric vehicle market.
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