GM's Electric Vehicle Production Struggles

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【Summary】GM's Chief Financial Officer, Paul Jacobson, acknowledged that the automaker has faced challenges in scaling up EV production due to issues with a supplier and module creation technology. Deliveries of the Cadillac Lyriq have been slower than expected, but customer reception has been positive. GM aims to produce EVs faster to meet the growing demand, with a target of 400,000 cumulative electric vehicles in North America by mid-2024.

FutureCar Staff Aug 22, 2023 9:56 AM PT

GM's Electric Vehicle Production Struggles

During the J.P. Morgan Auto Conference, GM's Chief Financial Officer Paul Jacobson acknowledged the "startup challenges" the automaker faced in relation to EV production. In response to a question about the Hummer EV and Cadillac Lyriq, Jacobson explained that the process of module creation, specifically the transition from cells to pack, had created a bottleneck in the production process. However, he assured attendees that the issue had been identified and addressed.

In 2022, GM delivered 122 Lyriqs, which fell below the company's expectations. Jacobson expressed the automaker's efforts to increase the volume of deliveries. The Lyriq, Cadillac's first EV, garnered significant attention, with reservations selling out within ten minutes. Notably, the buyers were primarily from the younger generation, which is a departure from Cadillac's typical customer base of individuals in their mid-50s. However, customers faced delays due to initial challenges at the Ultium plant in Ohio and software issues with the vehicle.

Despite the slow start, Jacobson mentioned that the supply side was improving, although not as quickly as desired. He acknowledged that every startup experiences growing pains, and GM was no exception. Nevertheless, customer reception to the Lyriq was positive, and Jacobson expressed confidence in the demand for EVs. The main challenge for GM was the inability to produce EVs at a fast enough pace.

Concerns and criticisms regarding 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. The automaker aims to produce 100,000 vehicles for the North American market in the second half of 2023, with a cumulative target of 400,000 electric vehicles by mid-2024.