General Motors (GM) announced on Tuesday a strategic shift in its production plans, opting to delay the assembly of electric pickup trucks at its Orion Township, Michigan plant. The decision, attributed to “evolving EV demand,” underscores a broader trend in consumer interest towards electric vehicles. This development follows Ford Motor Co.’s recent decision to reduce shifts at its facility dedicated to manufacturing the F-150 Lightning EV.
Originally slated for a late 2024 launch, production of the Chevrolet Silverado and GMC Sierra EV models will now commence no earlier than late 2025, according to GM sources. The company cited the move as a means to “optimize capital investment while aligning with evolving EV demand.” It is important to note that this alteration does not impact GM’s strategic plans for establishing battery plants across the United States.
A July report by Reuters highlighted a slower-than-anticipated growth rate in the U.S. electric vehicle market, leading to an accumulation of unsold EVs at some automakers’ dealerships. A spokesperson from GM clarified that this postponement is unrelated to ongoing negotiations with the United Auto Workers concerning a new labor contract.
Despite this setback in electric pickup production, GM remains steadfast in its commitment to bolstering EV output in 2024. This initiative includes the addition of a new shift at the Detroit-Hamtramck factory, presently focused on producing EV SUVs and pickup trucks. Additionally, GMC Sierra EV production is slated to kick off in Detroit next year. However, GM also affirmed its intention to conclude production of the Chevrolet Bolt EV by the close of 2023.
GM, with a goal to cease the sale of gasoline-powered vehicles by 2035, currently accounts for only a marginal fraction of EV sales in the U.S., constituting merely 2.8% of its total sales this year. The deceleration in electric vehicle interest coupled with GM’s consequent production delays underscores the considerable advancements needed before EVs become commonplace. Nevertheless, GM’s unwavering commitment to the production of EV models reaffirms their dedication to a more environmentally sustainable future.
Source: Reuters
