GM's Electric Vehicle Production Struggles

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【Summary】GM's Chief Financial Officer, Paul Jacobson, admitted that the automaker has faced challenges in scaling EV production due to a bottleneck in the module creation process. Despite positive customer reception and high demand, GM hasn't been able to produce EVs fast enough. The company delivered 122 Cadillac Lyriqs in 2022 and is aiming to increase volume. The sluggish start at the Ultium plant in Ohio and software issues have caused delays for customers.

FutureCar Staff Aug 21, 2023 4:44 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 EV production. He acknowledged that they had faced some "startup challenges" in this area. When asked about the Hummer EV and Cadillac Lyriq, Jacobson explained that they had encountered difficulties with a supplier and the technology surrounding module creation, which had created a bottleneck in the production process. However, he assured attendees that they had identified and addressed the problem.

In 2022, GM managed to deliver 122 Lyriqs. However, in July of this year, they fell short of their expectations with over 1,000 deliveries. Jacobson mentioned that the company was working to increase the volume of deliveries. The Lyriq, Cadillac's first EV, generated significant interest, with reservations selling out in just ten minutes. Bloomberg reports that the majority of buyers were from the younger generation, which is noteworthy considering that the average age of a Cadillac buyer is typically in their mid-50s. However, customers have been facing delays due to a slow start at the Ultium plant in Ohio, as well as software issues with the vehicle.

Jacobson acknowledged the slower-than-desired progress but expressed confidence in the supply side catching up. He recognized that any startup experiences growing pains, and GM was not exempt from that. Despite the challenges, customer reception has been positive, and Jacobson remains optimistic about the future. He stated that they feel very good about the demand for EVs in the market and that their biggest challenge is keeping up with production.

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 company produced 50,000 EVs for North America in the first half of 2023 and aims to produce an additional 100,000 vehicles for the region in the second half of the year. Their target for North America is to have a cumulative total of 400,000 electric vehicles by mid-2024.