GM's Electric Vehicle Production Lags

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【Summary】GM's Chief Financial Officer, Paul Jacobson, admitted that the automaker has faced challenges in scaling its EV production, particularly with a supplier and the technology involved in module creation. Despite positive customer reception and high demand for EVs, GM has struggled to produce them fast enough. The company delivered 122 Cadillac Lyriqs in 2022 and over 1,000 in July 2023, but the volume remains below expectations.

FutureCar Staff Aug 31, 2023 7:06 AM PT

During the J.P. Morgan Auto Conference, GM's Chief Financial Officer Paul Jacobson addressed investor concerns about the automaker's challenges in electric vehicle (EV) production. Jacobson acknowledged that GM had faced some "startup challenges" in this area.

Specifically, Jacobson mentioned a bottleneck in the process caused by a supplier and the technology involved in module creation. However, he reassured attendees that the problem had been identified and addressed.

In terms of the Cadillac Lyriq, GM delivered 122 units in 2022. However, in July of this year, the number increased to over 1,000, which was still below the company's expectations. Jacobson expressed the automaker's efforts to increase the volume of Lyriq deliveries.

The Lyriq, Cadillac's first EV, generated significant interest, with reservations selling out within ten minutes when they became available in September 2021. Notably, the majority of buyers were from the younger generation, representing both Gen X and Millennials, which is a departure from the typical Cadillac buyer demographic.

However, customers have faced delays due to a slow start at the Ultium plant in Ohio, as well as software issues with the vehicle. Jacobson acknowledged the challenges and growing pains associated with any startup but expressed confidence in the positive customer reception and the demand for EVs.

GM has been the subject of concerns and criticisms regarding its EV production. Earlier this year, CEO Mary Barry attributed the slow start to a supplier issue. Despite these challenges, GM produced 50,000 EVs in the first half of 2023 for North America and aims to manufacture 100,000 more in the second half of the year. The company's target for cumulative electric vehicles in North America by mid-2024 is 400,000.