GM Delays Some EV Truck Production Until Late 2025

[luebri]

Color me shocked! (Note: Heavy sarcasm)

My own editorial comments: In summary, in 2024 GM proved they wont really make any EV trucks at the "entry level" price advertised and the actual production of their Massive Battery is essentially vaporware. But hey the 18 Silverado EV's sold in Q3 so far is a lot better than the GMC Hummer's current sell rate!

https://insideevs.com/news/691887/gm-postponed-ev-pickup-production-orion-assembly/amp/

GM Delays Some Chevy Silverado EV, GMC Sierra EV Production Until Late 2025
GM's Orion Assembly is the source of more Ultium-platform EV delays.

Oct 17, 2023 at 3:26pm ET
General Motors intends to delay the start of production of some of its all-electric pickups at the Orion Assembly plant in Michigan.

The factory currently makes the Chevrolet Bolt EV and Bolt EUV electric cars, which later this year will be discontinued. The plant was set for retooling to handle Ultium-based pickups and scheduled to return online in the first quarter of 2025, so after about a year.

However, Automotive News reports that a General Motors spokesperson said on Tuesday that the start of Chevrolet Silverado EV and GMC Sierra EV production at the site will be postponed until late 2025. It means almost two years of zero production.

The company explains that the decision is not related to the ongoing UAW strike, but instead linked to a few other reasons, like "electric vehicle demand...the need for engineering upgrades" to boost profitability of the vehicles and "to better manage capital investment while aligning with evolving EV demand."

The combination of the mentioned reasons suggests to us that the demand is expected to be too low at the current prices/production costs. To increase the volume and justify the investment in the factory, prices must be lower, which leads to the necessity of cost cuts, This will require engineering improvements (and time). At least, that's a possibility of what is happening.

General Motors already produce all-electric pickups - the GMC Hummer EV Pickup (and SUV) and the Chevrolet Silverado EV at its Factory Zero in Detroit. The first 18 Silverado EVs (WT version for fleets) recently appeared in the sales stats for the third quarter. We will see how well the production progresses because so far it has been pretty low (less than 1,200 units sold in a quarter).

As we understand, over the next two years, GM's electric pickup production will rely on this particular factory. In 2024, it is expected to start production of the GMC Sierra EV and add a second shift.

Meanwhile, about 1,000 employees at Orion Assembly (Bolt EV/Bolt EUV) will have an opportunity to join other GM plants in the state.

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[Grease Lightning]

I understand selling the higher priced ones to get ROI back quicker, but I think Ford’s accountant (and Henry if he was alive) that by not selling the volume version, long term they are hurting themselves. If Ford would have sold the Pro and the XLT in volume earlier instead of focusing on the Platinum they likely would have seen more reservations convert to sales. Shoot the only reason I have my Lightning is I found an XLT on the lot and ran down to plop my $73k down. If it would have been the week before they dropped the price I would still be owning my Silverado but had an EV car as my daily.

There are only so many that blindly can justify an $80,000 + EV truck. The rest of the population has to justify the increased cost in the purchase or the range/charging concerns that are real.

I learned the realities of people’s concerns the other day. I was planning a trip to a quarter of our state that I used to visit and hardly concerned myself with planning. Well lo and behold there is only a handful of DCFC chargers with most only charging at 35-50 kw and most are showing as broken.

Some time next year I can reliably go as Rivian placed a new station but I need to wait for them to open up their network. So if I do go next week, I will have to have other options available like some LV 2 stations and a long wait.

 

[Toby57]

I am not shocked either. Not even surprised. Whomever penned the article stated the reasons correctly. Other manufacturers may follow suite and cut back on what is already in production. Lack of sales is partly due to lack of interest.

 

[Zprime29]

And high interest rates, those right on the line a year or two ago are firmly in the "no can do" camp now.

 

[Randall Stephens]

Wait so they’re not going to flood the market with WT4 work trucks?

 

[KevinC]

All the automakers were ramping up as if they were the only one entering into the electric market and would have it all to themselves. EV sales are up 65% this year and all the makers are falling short of projections and even Tesla is getting near the point where they have little order backlog(not ct reservation backlog). Too many sellers entering the market at the same time. Interest rates are a double whammy.

 

[Zaptor]

Lack of sales is partly due to lack of interest.

But also due to high interest.

 

[luebri]

But also due to high interest.

 

[Randall Stephens]

All the automakers were ramping up as if they were the only one entering into the electric market and would have it all to themselves. EV sales are up 65% this year and all the makers are falling short of projections and even Tesla is getting near the point where they have little order backlog(not ct reservation backlog). Too many sellers entering the market at the same time. Interest rates are a double whammy.

Really curious how many people will take CTs with the expected 75K launch price tag. The people on the CTOs forum think the thing is the second coming of Christ from what I can see, so I may be surprised. It's crazy how hyped people are about it. Dare I say, worse that Apple fans.

 

[Heliian]

entry level" price advertised

People were miffed when Ford couldn't meet the sub 40k price point but they still sell.

I put my money in Ford as I knew that with about 100 years of business behind them they had a plan. The CT is like a bad joke and gm and dodge/ram/stellantis/whatever were just pandering and trying to keep up.

The f150 lightning is a superior vehicle and actually made it to market. Nobody is side stepping into a rivian, they're crazy expensive and lack a dealer network.

BEVs are the next logical step in transportation. I liken the current market to the advent of the CFL lightbulb, a stepping stone to an even better future.

I'm already looking forward to the "t3", even with the reduced frunk space.

 

[Jaspernuts]

The problem is they can't ramp up their ultium batteries. They can say whatever they want, but this is what is holding them back.

 

[Bills R Electric]

Color me shocked! (Note: Heavy sarcasm)

My own editorial comments: In summary, in 2024 GM proved they wont really make any EV trucks at the "entry level" price advertised and the actual production of their Massive Battery is essentially vaporware. But hey the 18 Silverado EV's sold in Q3 so far is a lot better than the GMC Hummer's current sell rate!

https://insideevs.com/news/691887/gm-postponed-ev-pickup-production-orion-assembly/amp/

GM Delays Some Chevy Silverado EV, GMC Sierra EV Production Until Late 2025
GM's Orion Assembly is the source of more Ultium-platform EV delays.

None of the media will give Ford any credit, but Ford came out with an Electric Pickup about 2 years ahead of GM (and well ahead of Tesla).

Ford may not be pumping out a 100,000 Lightnings a year, but at least they are building EV pickups.

In the meantime I believe GM is making a mistake. They have to take their lumps. Building EVs and losing a lot of money on them, but learn, improve, change, repeat and work towards breakeven, then profitability on EVs. But you won't get there staying in the barn. Gotta get out there.

Ford will have 2 more years of building Lightnings to learn and find ways to cut costs. Plus Ford is working to build their GEN2 Lightning in 2025 in Tennessee. On paper, this should give Ford a pretty big lead over GM when it comes to building EV pickups going into the future.

 

[Maquis]

None of the media will give Ford any credit, but Ford came out with an Electric Pickup about 2 years ahead of GM (and well ahead of Tesla).

Ford may not be pumping out a 100,000 Lightnings a year, but at least they are building EV pickups.

In the meantime I believe GM is making a mistake. They have to take their lumps. Building EVs and losing a lot of money on them, but learn, improve, change, repeat and work towards breakeven, then profitability on EVs. But you won't get there staying in the barn. Gotta get out there.

Ford will have 2 more years of building Lightnings to learn and find ways to cut costs. Plus Ford is working to build their GEN2 Lightning in 2025 in Tennessee. On paper, this should give Ford a pretty big lead over GM when it comes to building EV pickups going into the future.

I don’t know if I’d call it a mistake. See post 11. GM just can’t
“git-r-done.”

 

[DreamBrother1]

Kind of related here but Ford, GM, and others have been hinting at decreased EV demand for a while. I'm sure there are many contributing factors but the main driver of orders appears straight forward to me -- cost! Media outlets constantly try to push the narrative that EVs are essentially a fad. That EVs wont sell because they are inferior vehicles that will all catch on fire. To anyone paying attention this is just incorrect. People really like EVs, but they still aren't very accessible, especially in larger form factors. I'm incredibly excited about my F150 lightning, but the entry point is still so high for them to expect massive sales numbers. The cheapest real and available EV truck in the US starts at $50k. Plus tax, plus registration, plus variable home charger installation costs, plus any add ons like 9.6kwh pro power, tow tech/max tow, bed liner, tonneau cover, running boards, etc. Which many (not all) truck owners may want. On top of this are terrible interest rates. Sales will increase with lower cost of entry for the customer. I'm not an automotive executive but to me the goal is under $40k. Saying that seems crazy because that's a pretty low number in 2023. This takes a lot of investment from the manufacturer to reduce the cost per vehicle at larger scale, and other factors to fall in line like cost and availability of materials. 'Production hell' as the billionaire cybertruck boy called it. Just bugging me because I've been seeing more articles recently after ford announced cutting their 3rd shift at Rogue that just don't get it.

 

[luebri]

the goal is under $40k. Saying that seems crazy because that's a pretty low number in 2023.

Doesn’t seem crazy. It 100% Is crazy. ICE crew cab trucks are not even $40k, a comparably priced ICE F150 to a lightning are very close in price.

Ford did a great job getting to market first, they should be commended for that. Now they have a harder job, actually selling them in meaningful numbers. My advice, do whatever it takes to get ICE truck buyers test driving these things so they actually sell. Educating their sales people would obviously help as well. The problem is every ice sale Ford converts to an EV sale, Costs them a lot of money in the short term.

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