In an earnings call on April 25, General Motors disclosed its plans to halt the production of its mainstream electric vehicle by the end of the year as it pursues new battery technology.
GM CEO Mary Barra told Wall Street analysts that the Detroit-based automaker would start utilizing the Chevy Bolt‘s Orion Assembly plant in Michigan to produce the 2024 Silverado EV pickup in 2024.
The plan occurred following the model’s battery fires and pricey recalls that impeded the automaker’s EV push. Nonetheless, Chevy Bolt is among the few EVs below $30,000 in the US market, with a base price of just about $27,500.
Why is it necessary?
Chevy Bolt models remain using the company’s older and soon-to-be-bygone BEV2 platform. It is a disadvantage as GM has already pivoted to Ultium battery architecture for its next-gen electric models, such as the GMC Sierra EV, Hummer EV, and the Cadillac Lyriq.
Now, the Chevrolet brand plans to introduce three Ultium-based EVs, including the Silverado EV, Blazer EV, and Equinox EV.
“When the Chevrolet Bolt EV launched, it was a huge technical achievement and the first affordable EV, which set in motion GM’s all-electric future.
As the company continues to grow it’s EV portfolio with the Ultium platform, and as construction continues at the Orion Township, MI, assembly plant in preparation for battery electric truck production beginning in 2024, Chevrolet confirmed Bolt EV and EUV production will end late this year.”
Cody Williams, Chevrolet’s senior manager for communications, said in a statement
Expected outcome
GM CEO Mary Barra stated that this strategy would enable the automaker to produce 600,000 electric trucks per year when the production plants are fully operational.
Apart from the Orion plant, the Silverado EV will also undergo production at the company’s Factory Zero in Detroit and Hamtramck.
Wedbush Securities analyst Dan Ives praised GM’s strategy, saying it is smart.
“GM is ripping the Band-Aid off on the Bolt and betting on the future of EVs around the Lyriq, Hummer, Blazer, Silverado and other parts of its transformation. The EV baton is being handed to the future of GM. It’s a smart move.”
Wedbush Securities analyst Dan Ives
See Also:
- General Motors leads $50 million funding round in EnergyX for lithium supply in the US
- General Motors launches its Dealer Community Charging Program
- General Motors installs the first of 40,000 new electric vehicle chargers
- General Motors targets $50 billion in EV revenue
- General Motors boosts electric and intelligent connected vehicle rollout in China
GM sold 20,670 EVs during the first quarter of 2023, of which 19,700 were Bolt and Bolt EUV models. Once the Bolt is phased out, the Chevy Equinox EV will take over as General Motors’ most affordable plug-in vehicle. The company has stated that when the midsize SUV is delivered later this year, it will have a starting price of “around $30,000” and have a range of up to 300 miles.
