GM's Electric Vehicle Production Struggles

Home > Industry Analysis > Content

【Summary】GM's Chief Financial Officer, Paul Jacobson, acknowledged at the J.P. Morgan Auto Conference that the company has faced challenges in scaling up electric vehicle (EV) production. He mentioned issues with a supplier and technology related to module creation as bottlenecks in the process. Despite positive customer reception and high demand, GM has been unable to produce EVs quickly enough.

FutureCar Staff Aug 17, 2023 4:14 PM PT

GM's Electric Vehicle Production Struggles

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

Specifically, when asked about the Hummer EV and Cadillac Lyriq, Jacobson explained that GM had faced difficulties in scaling production for both vehicles. He mentioned a supplier issue and technology-related bottlenecks in the module creation process as contributing factors to the challenges.

However, Jacobson assured attendees that GM had identified and addressed the problems. He emphasized the company's commitment to overcoming these challenges and improving EV production.

In terms of the Cadillac Lyriq, GM delivered 122 units in 2022. However, the number fell below the company's expectations. In July of the same year, GM delivered over 1,000 Lyriqs, aiming to increase the volume further.

The Lyriq, Cadillac's first EV, garnered significant attention as it sold out within ten minutes when reservations opened in September 2021. Notably, the majority of buyers were from the younger generation, including both Gen X and Millennials. This demographic shift is noteworthy considering that the average age of a Cadillac buyer typically falls in the mid-50s range.

Unfortunately, customers faced delays due to a slow start at the Ultium plant in Ohio, USA, coupled with software issues in the vehicles. Jacobson acknowledged the challenges but expressed confidence in the positive customer reception and the future outlook for EV demand. He noted that the main challenge for GM was the inability to produce EVs quickly enough to meet the demand.

GM has been under scrutiny regarding its EV production for some time. Earlier this year, CEO Mary Barry attributed the slow start to a supplier issue. Despite the challenges, GM produced 50,000 EVs for North America in the first half of 2023 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 is 400,000 by mid-2024.