EV production speed insufficient

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【Summary】GM's CFO, Paul Jacobson, admitted that the company has faced startup challenges in EV production, specifically with a supplier and technology around module creation. Deliveries of the Cadillac Lyriq have been slower than expected, but customer reception has been positive. The biggest challenge for GM is not being able to produce EVs fast enough to meet demand. The company aims to produce 100,000 EVs for North America in H2 2023 and 400,000 cumulative EVs by mid-2024.

FutureCar Staff Aug 24, 2023 9:38 AM PT

During the J.P. Morgan Auto Conference, GM's Chief Financial Officer Paul Jacobson addressed concerns about the automaker's EV production. He acknowledged that they had encountered some "startup challenges" in this area.

Specifically, when asked about the Hummer EV and Cadillac Lyriq, Jacobson explained that they had faced difficulties in scaling both vehicles. He mentioned a supplier issue and a bottleneck in the module creation process as contributing factors to the challenges.

However, Jacobson reassured attendees that they had identified and addressed the problem. He emphasized their commitment to resolving these issues.

In terms of deliveries, GM delivered 122 Lyriqs in 2022. In July of this year, they delivered over 1,000 Lyriqs, although this fell below their expectations. Jacobson stated that the automaker was working to increase the volume of deliveries.

The Cadillac Lyriq, Cadillac's first EV, generated significant demand. When reservations opened in September 2021, it sold out within ten minutes. Interestingly, the majority of buyers were from the younger generation, split between Gen X and Millennials. This is noteworthy considering that the average age of a Cadillac buyer is typically in their mid-50s.

However, customers have experienced delays due to a slow start at the Ultium plant in Ohio, as well as software issues with the vehicle. Jacobson acknowledged these challenges and mentioned that they were gradually improving the supply side of the production process.

Despite the setbacks, customer reception for the Lyriq has been positive, and Jacobson expressed confidence in the future demand for EVs. He noted that their main challenge was the inability to produce EVs at a fast enough pace to meet the demand.

Concerns and criticisms surrounding GM's EV production have been circulating for some time. Earlier this year, CEO Mary Barry attributed the slow start of their electric vehicles to a supplier issue.

In the first half of 2023, GM produced 50,000 EVs for North America, and they are aiming to manufacture 100,000 vehicles for the region in the second half of the year. Their target for cumulative electric vehicles in North America is 400,000 by mid-2024.