GM's Electric Vehicle Production Struggles

Home > Industry Analysis > Content

【Summary】GM's Chief Financial Officer, Paul Jacobson, admitted that the automaker has faced challenges in scaling up EV production, particularly due to issues with a supplier and module creation technology. Despite positive customer reception and strong demand, GM has struggled to produce EVs quickly enough. The company aims to produce 100,000 vehicles for North America in the second half of 2023 and reach a cumulative total of 400,000 electric vehicles by mid-2024.

FutureCar Staff Aug 30, 2023 4:49 PM PT

GM's Electric Vehicle Production Struggles

During the J.P. Morgan Auto Conference, GM's Chief Financial Officer Paul Jacobson addressed concerns about the automaker's electric vehicle (EV) production. He acknowledged that GM had faced some "startup challenges" in this area. Specifically, there were difficulties with a supplier and the technology related to module creation, which created a bottleneck in the production process. However, Jacobson assured attendees that the problem had been identified and addressed.

In terms of the Cadillac Lyriq, GM's first EV under the Cadillac brand, the initial demand was overwhelming. When reservations were made available in September 2021, the Lyriq sold out in just ten minutes. Interestingly, the majority of buyers were from the younger generation, which is a departure from the typical Cadillac buyer demographic. However, customers have experienced delays due to a slow start at the Ultium plant in Ohio and software issues with the vehicle. Jacobson acknowledged that the production has been slower than desired, but he expressed confidence in the positive customer reception and the overall demand for EVs in the market.

GM delivered 122 Lyriqs in 2022, but in July of this year, the number increased to over 1,000. Although this is below the firm's expectations, the company is making efforts to drive up the volume. Despite the challenges, Jacobson emphasized that GM has been unable to produce EVs fast enough to meet the demand. The automaker aims to produce 100,000 vehicles for North America in the second half of 2023 and a cumulative total of 400,000 electric vehicles by mid-2024.

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 issue. While the company has faced growing pains and startup challenges, it remains optimistic about the future of EVs and is actively working to overcome these obstacles.