GM to slow growth of EV production

Market: Battery materials, Metals
24/10/23

General Motors (GM) said it would temper the pace of it's electric vehicle (EV) production growth in the near term, cutting output targets and delaying the roll-out of a few electric models.

The shift in strategy comes amid what GM anticipates will be an industry-wide slowdown in demand for EVs and the ongoing United Auto Workers (UAW) union strike, which expanded to the US automaker's SUV plant in Arlington, Texas, on Tuesday.

GM withdrew plans to make 400,000 EVs in North America from 2022 to 2024 and 100,000 EVs in the second half of this year as part of the reworked approach, chief financial officer Paul Jacobson said in a third-quarter earnings call. GM will not be giving updated targets but is "moving to a more agile approach" as it seeks to maximize its Ultium battery profitability over volumes.

"We're going to respond to demand," chief executive Mary Barra said. "We're going to make sure we have the right products at the right time, but we're not over-building."

As part of the slowdown, GM is delaying the launch of its electrified models of the Chevrolet Equinox, the Chevrolet Silverado RST and the GMC Sierra Denali at its Orion assembly plant in Michigan by a few months to "ensure their success."

The pause will allow GM to implement some improvements to the manufacturing process it picked up on during the early stages of production, Jacobson said.

The company still expects EV capacity of 1mn units/yr in North America by the end of 2025 and for its joint-venture battery plant in Ohio to reach full capacity by next month.

By Alex Nicoll

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20/11/24

ArcelorMittal could close two service centres in France

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19/11/24

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19/11/24

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18/11/24

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18/11/24

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