Properly aligned from left: 2025 GMC Sierra EV Elevation, 2025 GMC Sierra EV AT4, and 2024 GMC Sierra EV Denali Version 1.
GM’s latest hurdle sees the postponement of electric vehicle drive production at its Toledo Propulsion Manufacturing facility in Ohio, further complicating the automaker’s electrification efforts. The corporation will commence construction of electrical drives by the end of 2024.
GM delays another key EV funding initiative?
Staff at General Motors’ Toledo plant uncovered a surprise revelation during a meeting on Wednesday: the company’s electric vehicle (EV) drive unit production schedule has been pushed back nine months.
The company initially planned to begin building the models in the first quarter of 2024, but this timeline has been revised and is now expected to commence in the fourth quarter of the same year. The United Auto Workers’ (UAW) Local 14 President Tony Totty, representing facility staff, noted that the proposed plan will affect approximately 75 temporary employees.
General Motors closed its 6-speed transmission manufacturing facility in April, resulting in approximately 100 temporary employees being let go. Around a quarter of them secured permanent jobs under the newly negotiated UAW labour agreement.
General Motors confirmed the news in a press statement issued on Wednesday. The automaker has revised its timeline for launching the Electric Drive Unit, pushing back the initial start date to autumn 2024 to better synchronize with Orion Meeting’s planned production schedule.
General Motors has secured a substantial $760 million investment to retool one of its US plants and prepare it for the production of electric motor drives, marking a significant milestone in the company’s efforts to ramp up electric vehicle manufacturing domestically.
Following General Motors’ announcement to delay production of its electric vehicles at the Orion Assembly plant until late 2025, along with the Chevrolet Silverado RST and GMC Sierra Denali EVs.
General Motors has started production of the Chevrolet Silverado EV Work Truck at its Factory ZERO facility, which is currently available for purchase. Meanwhile, the Silverado RST EV is set to roll off the assembly line in the first half of 2024.
The GMC Sierra EV will likely be manufactured at Factory ZERO and is expected to become available next summer.
General Motors’ electrical vehicles can be manufactured at its Orion assembly plant in Michigan, where the current Bolt EV is already being produced. The corporation has reiterated its plan to delay the transition of Orion’s production line to electric vehicles until late 2025, citing the need to manage capital expenditures and adapt to shifting market demands for EVs.
Electrek’s Take
Despite some manufacturers aggressively expanding their electric vehicle offerings in the US market, such as Volvo and Hyundai, General Motors continues to lag further behind.
In a surprise upset, Hyundai and its affiliate Kia overtook General Motors’ Chevrolet brand to claim the number two spot in US electric vehicle (EV) registrations during the third quarter, trailing only Tesla.
As General Motors phases out its affordable electric vehicle, the Bolt, by year’s end, several new budget-friendly models are set to debut on the market?
Volvo’s budget-friendly electric car, the EX30, is set to hit the market in early 2024, starting at an affordable price of under $35,000. Meanwhile, Hyundai unveiled its latest innovation, the 2024 Kona Electric, boasting starting prices under $33,000. The latest electric SUV stands out for its enhanced design, elevated features, and intelligent innovation in every aspect. This product also features additional variability and faster recharging capabilities.
The delay in GM’s electric vehicle (EV) truck production could have far-reaching and detrimental consequences. Tesla unveils highly anticipated Cybertruck as competitors like Rivian accelerate production efforts.
Another hurdle hinders General Motors’ ambition to make electric vehicles accessible to all.
Supply:
