GM's Electric Vehicle Production Struggles

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【Summary】GM's Chief Financial Officer, Paul Jacobson, admitted to facing "startup challenges" in EV production, particularly with a supplier and module creation technology. GM delivered fewer Cadillac Lyriq EVs than expected in July but aims to increase volume. The Lyriq, Cadillac's first EV, received positive customer reception despite delays caused by software issues at the Ultium plant. GM acknowledges the demand for EVs but struggles to produce them quickly enough.

FutureCar Staff Aug 20, 2023 6:28 AM PT

GM's Electric Vehicle Production Struggles

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

When asked about the Hummer EV and Cadillac Lyriq and the perceived difficulty in scaling production for both vehicles, Jacobson explained that the bottleneck in the process was related to module creation and the transition from cells to packs. However, he reassured attendees that the problem had been identified and addressed.

In 2022, GM delivered 122 Lyriqs, which was below their expectations. However, in July of this year, they managed to deliver over 1,000 Lyriqs, indicating efforts to increase production volume. The Cadillac Lyriq, Cadillac's first EV, garnered significant interest, with reservations selling out in just ten minutes. Interestingly, most buyers were from the younger generation, a departure from the typical Cadillac buyer profile.

Despite the positive customer reception, there have been delays due to a slow start at the Ultium plant in Ohio, as well as software issues with the vehicle. Jacobson acknowledged the challenges faced during the startup phase and expressed confidence in overcoming them. He also emphasized the strong demand for EVs and the need to ramp up production to meet it.

GM's EV production has faced ongoing concerns and criticisms. Earlier this year, CEO Mary Barry attributed the slow start to a supplier issue. However, the automaker remains committed to its goals, aiming to produce 100,000 EVs for North America in the second half of 2023 and reaching a cumulative total of 400,000 electric vehicles for the region by mid-2024.