GM's Electric Vehicle Production Struggles

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【Summary】GM's CFO, 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 high demand, GM has been unable to produce EVs fast enough. The company aims to produce 100,000 electric vehicles for North America in the second half of 2023 and reach a cumulative total of 400,000 electric vehicles in the region by mid-2024.

FutureCar Staff Aug 31, 2023 12:11 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 regarding the automaker's EV production. He acknowledged that the company had faced some "startup challenges" in this area.

When asked about the Hummer EV and Cadillac Lyriq, Jacobson explained that GM had encountered difficulties in scaling both vehicles. He specifically mentioned a supplier issue and a bottleneck in the module creation process.

However, Jacobson reassured attendees that these problems had been identified and addressed. He expressed confidence in the company's ability to overcome these challenges.

In 2022, GM delivered a total of 122 Lyriqs. This figure fell below the company's expectations. In an effort to increase production volume, Jacobson stated that GM was actively working towards driving up the numbers.

The Lyriq, Cadillac's first EV, generated significant demand when reservations opened in September 2021. Within ten minutes, all available units were sold out. Interestingly, the majority of buyers were from the younger generation, a departure from the typical Cadillac buyer demographic.

Unfortunately, customers have experienced delays due to a slow start at the Ultium plant in Ohio and software issues with the vehicle. Jacobson acknowledged these challenges, attributing them to the growing pains of any startup.

Despite the production setbacks, customer reception for the Lyriq has been positive. Jacobson expressed confidence in the market demand for EVs and highlighted the company's inability to produce them quickly enough as the main challenge.

Concerns and criticisms surrounding GM's EV production have been circulating for some time. Earlier this year, CEO Mary Barry attributed the slow start to a supplier issue.

GM's goal for North America is to produce 50,000 EVs in the first half of 2023 and a total of 100,000 vehicles for the region in the second half of the year. By mid-2024, the company aims to have a cumulative total of 400,000 electric vehicles in North America.