General Motors is slowing the pace of electric car production, but it’s still committed to a future full of electric vehicles.
The automaker originally planned to produce 400,000 electric vehicles by the end of 2023, but has now pushed back that goal to mid-2024, according to Wall Street Journal. The move, which comes after GM reported a big increase in gasoline truck deliveries in the third quarter of 2023, is reportedly due to battery problems.
2023 Chevrolet Bolt EUV Redline Edition
GM noted a slow start at Ultium Cells LLC battery factory in Ohio, one of several joint ventures between the automaker and battery supplier LG.
But GM still seems to be preparing for the influx of electric vehicles. It highlights the “Electric Vehicles for All” advertising campaign, which features the Chevrolet Bolt EV and EUV, as well as the upcoming Silverado EV, Blazer EV and Equinox EV.
2024 Chevrolet Equinox EV
GM also became one of the first companies to comment on its expected qualification for a revamped federal electric vehicle tax credit, which requires domestic assembly and a certain level of domestic battery materials to qualify for the full $7,500.
GM CEO Mary Barra, responding to a question last week quarterly call to investors, noted that GM believes some of its models will be eligible for the $3,750 price tag early next year, and will be eligible for the full $7,500 in two to three years. It also sees an opportunity for its suppliers to use a tax credit of up to $45 per kWh for US-made cells and up to 10% of battery electrode materials coming from the US, further boosting affordability.
Barra also said GM is working on contracts for battery materials and with suppliers to meet its sales target 1 million electric cars in North America annually through 2025. In July, GM said it would all battery material is secured to achieve that goal, and earlier this month the automaker acquired a stake in an Australian mining company that mines nickel and cobalt for batteries.
with reporting by Bengt Halvorson