General Motors (GM) announced a six-month delay in retooling its electric truck plant in Michigan, pushing the timeline to mid-2026. This delay means GM will not meet its previous goal of having a North American production capacity of 1 million electric vehicles (EVs) by 2025. Additionally, the debut of Buick’s first EV, initially expected in 2024, has been postponed indefinitely, raising questions about GM’s overall EV strategy.
GM CEO Mary Barra addressed these changes during the company’s second-quarter earnings call, emphasizing a commitment to responsible and profitable growth. This announcement follows Barra’s recent concerns about meeting GM’s North American EV production capacity targets.
The delay also casts uncertainty on GM’s plans for future battery cell plants beyond the existing joint venture facilities with LG Energy Solution in Ohio and Tennessee. GM had previously announced intentions to build four multibillion-dollar battery cell plants in the U.S. by 2026. While Barra assured a “meaningful cadence” in growing cell production, GM CFO Paul Jacobson refrained from commenting on potential delays or cancellations of these future plants. He stated the company remains guided by customer demand and is focused on rapidly scaling its first two cell plants.
Despite these setbacks, GM reported a 40% increase in U.S. EV deliveries during the second quarter, totaling 21,930 units. However, EVs only comprised 3.2% of GM’s total U.S. sales for the quarter. Jacobson indicated that GM aims to ramp up production and vehicle wholesales to between 200,000 and 250,000 all-electric vehicles in North America this year. He noted that approximately 75,000 new EVs were wholesaled in the first half of the year.
Jacobson reiterated GM’s expectation that its EVs will become profitable on a production basis once the company reaches an output of 200,000 units by the fourth quarter. He acknowledged that while additional EV sales are anticipated to lower the company’s earnings, they will still be less profitable than GM’s traditional gasoline models.
These delays have introduced new uncertainties regarding GM’s ambitious EV goals, particularly its plan for the Buick brand to go fully electric by 2030 and the company’s overarching strategy to offer only electric consumer vehicles by 2035. The automotive industry will be closely watching how GM navigates these challenges and adjusts its production and growth strategies in response.
By pushing forward with responsible growth and scaling its EV production, GM remains committed to its long-term vision for electrification, despite the current hurdles.
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