GM's Electric Vehicle Production Struggles

author: FutureCar Staff    

During the J.P. Morgan Auto Conference, GM's Chief Financial Officer Paul Jacobson acknowledged that the company had encountered some challenges in the early stages of EV production. When asked about the Hummer EV and Cadillac Lyriq, Jacobson explained that there had been difficulties with a supplier and the technology involved in module creation, which had caused a bottleneck in the production process. However, he assured attendees that the problem had been identified and addressed.

In 2022, GM delivered 122 Lyriqs, but in July of this year, the number increased to over 1,000. Despite this, it fell short of the company's expectations, and Jacobson expressed the automaker's efforts to ramp up production volume. The Lyriq, Cadillac's first EV, generated significant demand, with reservations selling out in just ten minutes. Notably, the buyers were predominantly from the younger generation, which is a departure from the typical Cadillac buyer profile.

However, customers have faced delays due to a slow start at the Ultium plant in Ohio, where the Lyriq is manufactured. This was primarily caused by software issues with the vehicle. Jacobson acknowledged the challenges faced during the startup phase but remained optimistic about the future. He emphasized that customer reception had been positive, and the main obstacle was the company's ability to produce EVs quickly enough 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 GM's electric vehicles to a supplier. Despite the challenges, the automaker aims to produce 100,000 electric vehicles for North America in the second half of 2023 and achieve a cumulative total of 400,000 electric vehicles in the region by mid-2024.

FutureCar Staff