Basic Motors (GM) seems to get again on monitor this yr as executives imagine EV “manufacturing hell” is behind it. After lacking EV gross sales targets for the previous two years, will 2024 be the yr of execution, as GM says it’s going to?
Is GM placing manufacturing hell behind it?
After delivering 75,883 EVs final yr, GM (once more) missed its goal of promoting 100,000 alone within the second half of 2023.
The automaker encountered freight delays, software program glitches, and different points that delayed timelines. After nearly three months, GM lifted the Blazer EV stop-sale earlier this month. GM issued the stop-sale in December, 4 months after opening orders.
GM confirmed it was pausing gross sales to repair a software program glitch. Chevy stated the measure was non-safety-related and impacted a restricted variety of Blazer EV homeowners.
To make issues worse, GM ended manufacturing of its best-selling Chevy Bolt EV on the finish of 2023, which accounted for 62,045 or over 81% of EV gross sales final yr.
GM goals to construct 200,000 to 300,000 Ultium-based EVs, or about 20 instances greater than it did in 2023. The purpose continues to be effectively wanting its earlier goal of constructing 400,000 EVs by mid-2024.
CEO Mary Barra stated 2024 is the “yr of execution” as GM seems to get again on monitor. “Getting automobiles on the market proper and getting the software program” straight is on the prime of the to-do checklist.
Concerning ramping up Ultium battery manufacturing, CFO Paul Jacobson stated at a current speech, “We’ve had some challenges scaling it,” however he added, “I feel most of these are behind us.”
GM offered fewer than 14,000 Ultium-based EVs in 2023, together with the Cadillac Lyriq (9,154) and GMC Hummer (3,244). The Blazer EV and Silverado EV WT started rolling out in late 2023, with 482 and 461 fashions offered in 2023, respectively.
Rivian offered extra R1S fashions alone than GM did Ultium EVs final yr. With 24,783 R1S fashions handed over, Rivian’s electrical SUV was the seventh best-selling EV within the US. Chevy’s Bolt EV was third.
Overcoming hurdles at Manufacturing unit Zero
GM says it has doubled battery manufacturing at its Manufacturing unit Zero plant since This fall, based on a brand new Bloomberg report, however extra nonetheless must be performed.
The report says GM rushed its personal finest practices with Ultium manufacturing to get batteries out. GM skipped the standard assembly-line setup to check manufacturing earlier than getting began.
As a substitute, the corporate put in totally automated battery meeting traces on the plant straight away relatively than testing elsewhere, based on Mike Anderson, vp of worldwide electrification and battery programs.
Battery cells should be pressed and packed exactly, so with a robotic stacking six battery cell pouches at a time, errors can occur.
If the cells don’t line up precisely, the unit will bend, and the cell gained’t hyperlink with the others. The Detroit Hearth Division has been referred to as 9 instances to Manufacturing unit Zero since August.
GM goals to beat the problems after hiring battery consultants, consultants, and others, together with former Tesla battery professional Kurt Kelty, to repair meeting.
Anderson stated he thinks the corporate has “turned the nook” at its battery manufacturing unit because it goals to hit GM’s manufacturing goal this yr.
GM isn’t the one automaker with software program points delaying EV targets. Porsche lastly launched its all-electric Macan EV earlier this yr after a virtually two-year delay. Ford additionally issued a stop-ship order on the F-150 Lightning in February.
GM will introduce the brand new Ultium-based Chevy Bolt subsequent yr, which can save the corporate “billions” with LFP batteries.
What do you guys suppose? GM has damaged a number of guarantees previously. Will 2024 be any totally different? Tell us what you suppose within the feedback.
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