GM postpones the production of its Equinox, Silverado, and GMC Sierra EVs, revealing updates on the Ultium Bolt following their Q3 earnings report.
GM shifts production timelines to focus on profitability and respond to current EV demand.
Ultium Bolt to receive advancements, including LFP batteries, enhancing its affordability.
Despite a delay, GM remains committed to achieving significant profit margins on EVs by 2025.
According to a recent report from Electrek, General Motors (GM) has decided to reschedule the production of several of its electric vehicles (EVs) including the Equinox EV, Silverado EV, and GMC Sierra EV. This strategic move was revealed shortly after the company’s Q3 earnings announcement. The decision aligns with GM’s efforts to prioritize profitability and adapt to the changing dynamics of the EV market.
GM’s CEO, Mary Barra, elucidated the company’s stance, stating that the adjustments are made to ensure the EVs are more cost-effective in their production, ultimately leading to higher profitability in the long run. She highlighted that these changes would impact certain Ultium-based models. Although an exact timeframe wasn’t specified, Barra hinted at a delay of several months.
A notable development in the third quarter was the increase in Ultium-based EV production. There was a 23% production increase from the previous quarter, with a total of 32,000 EVs produced, attributed to the resolution of supply chain challenges. For the subsequent quarter, GM anticipates that a majority of its EV production will include models like the Cadillac Lyriq, Chevy Blazer EV, Chevy Silverado EV (Work Truck edition), and the GMC Hummer EV.
Additionally, the forthcoming Ultium-based Bolt EV is poised for improvements, with Barra mentioning it will be a superior model. A significant upgrade includes the integration of LFP batteries, which are expected to reduce costs and make the EV more pocket-friendly for consumers.
Amidst these developments, GM also took a step back from its annual projections due to the UAW strike, indicating that clearer financial perspectives would emerge post the signing of new contracts. In a broader financial context, GM reported a 5.4% year-over-year revenue increase, reaching $44 billion. However, a slight decline was observed in the net income margin and net income for Q3 compared to the previous year.