- GM ends Chevy Bolt production, converting plant for electric pickups.
- Orion plant to produce 600k electric trucks annually when it reopens in 2024.
- GM to release Chevy Equinox EV this year and is working on a lower-cost EV with Honda.
- GM and Samsung SDI invest $3bn in a new EV battery cell plant in the US.
General Motors (GM) has announced that it will stop production of its Chevrolet Bolt models by the end of 2023. The Michigan automaker stated that the plant currently responsible for Bolt production will be converted to make electric pickup trucks. Despite being the company’s top-selling electric vehicle, GM is ending Bolt production to focus on electric truck production. The automaker is set to renovate the Orion plant in 2022 and use it to manufacture electric versions of the GMC Sierra and Chevrolet Silverado pickup trucks. GM CEO Mary Barra said that when the Orion plant reopens in 2024, the company will have the capacity to produce 600,000 electric trucks annually. While Edward Jones analyst Jeff Windau believes that GM is transitioning well from combustion engines to electric vehicles, the successful conversion will still be difficult to orchestrate.
GM is looking to manage the transition from gasoline to electric vehicles well as the sale of electric vehicles rises and the sale of gas vehicles drops. The move to electric vehicles has also brought the industry’s attention to car shoppers who are curious about EV capabilities. GM plans to roll out a Chevy Equinox EV later this year, which will start around $30,000 and is working with Honda to produce a lower-cost EV.
In addition to focusing on EV production, GM and South Korea’s Samsung SDI will invest more than $3 billion in a new EV battery cell plant in the US. The investment is part of the company’s move to have a strong position in the EV market. However, the shift towards EV production is not without its challenges. There is a global shortage of computer chips and other components used in manufacturing cars, which has forced the auto industry to slow production, driving up prices as demand remains strong. Nevertheless, GM reported $2.37 billion in profit from January through March, up from $1.99 billion in the previous year. The company expects to start turning low-to-mid single-digit profit margins on electric vehicles by 2025.
