Regardless of a disappointing begin for Basic Motors’ electrical automobile gross sales, the automaker is vowing to construct extra this yr. GM says it’s overcoming battery provide chain points and expects “much more EVs being constructed within the second half of this yr.”
Ultium battery manufacturing hurdles
After EV gross sales reached over 20K for the primary time in a three-month interval in Q1 2023, GM’s momentum slipped within the second quarter.
GM bought 15,652 EVs within the second quarter, down over 20% from Q1. To make issues worse, practically 14K have been Chevy Bolt EV or EUV fashions, which the automaker is discontinuing later this yr (though a next-gen Bolt EV continues to be in play).
The slowdown comes because the automaker focuses on new electrical fashions constructed on its Ultium EV platform. Though the versatile platform is designed to optimize manufacturing, GM continues to be figuring out the availability chain kinks.
Its first Ultium-based EV, the GMC Hummer EV, launched in late 2021, had two gross sales within the first quarter of the yr and one other 47 in Q2 (-83% YOY).
The Cadillac Lyriq, GMs second Ultium EV, noticed solely modest progress. GM bought 968 within the first three months of the yr and 1,348 in Q2.
Moreover, because of the battery scarcity, GM has shut down its CAMI meeting plant for the month, the place the BrightDrop electrical supply van is inbuilt Canada.
GM’s CEO, Mary Barra, defined throughout an interview final month that battery manufacturing was the bottleneck holding them again. She stated as battery capability comes on-line, “it is going to be dramatically totally different subsequent yr.” Now, one other government is echoing the chief’s assertion.
GM plans to construct extra Ultium-based EVs this yr
Based on the Detroit Free Press, GM’s president of North America, Rory Harvey, stated battery capability will choose up within the second half of this yr.
On a name with different GM executives, Harvey stated the automaker is coming “on top of things on battery capability and constructing momentum.” He added:
I anticipate much more EVs being constructed within the second half of this yr than the primary half of this yr.
GM started constructing the 2023 Hummer EV at its Manufacturing unit Zero EV meeting plant this spring. However, a supply instructed the Detroit Free Press, though some have shipped, “some want updates on the software program. It’s transferring very sluggish.” The individual, who requested to stay nameless, stated:
We’ve had provide points — something within the provide chain — may very well be the drive items, something … you get one half and instantly it’s a special one which’s wanted.
Harvey acknowledged the sluggish EV ramp-up to this point this yr however prompt battery module capability as the one provide chain hurdle.
GM will get its battery cells from its first battery plant in Warren, OH, which started manufacturing them final fall. With three extra deliberate, one in TN, anticipated to return on-line later this yr, one other in Michigan in 2024, and a fourth in Indiana, GM expects over 160 GWh battery cell capability when all crops are absolutely operational.
Because the report notes, one other hurdle GM is dealing with has been logistics; a scarcity of rail vehicles is impacting the trade. On Monday, Chevrolet’s VP Scott Bell stated it stays the corporate’s largest problem.
The corporate might want to determine the scenario out quickly with plans to launch three new high-volume Ultium EVs from Chevy by the tip of the yr, together with the Silverado EV, Equinox EV, and Blazer EV.
Earlier this month, GM’s Ramos Arizpe plant in Mexico introduced the primary Chevy Blazer EV left the power and is on its approach to the US.
Electrek’s Take
GM has did not ship on quite a few guarantees over the previous a number of years, so a number of executives vowing to construct extra EVs this yr isn’t a assure.
Then again, the automaker is within the midst of constructing extra battery capability, however it will probably’t occur in a single day. Till then, GM appears content material with filling within the demand hole with its ICE autos.
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