GM's EV production not meeting demand

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【Summary】GM's Chief Financial Officer, Paul Jacobson, admitted that the automaker has faced startup challenges in EV production, particularly with a supplier and technology around module creation. Despite positive customer reception and high demand, GM has been unable to produce EVs fast enough. The company delivered 122 Lyriqs in 2022 and over 1,000 in July 2023, but below expectations. GM aims to produce 100,000 vehicles for North America in H2 2023 and 400,000 cumulative electric vehicles by mid-2024.

FutureCar Staff Aug 23, 2023 6:50 AM PT

During the J.P. Morgan Auto Conference, GM's Chief Financial Officer Paul Jacobson acknowledged that the company had encountered some challenges in the production of electric vehicles (EVs). When asked about the Hummer EV and Cadillac Lyriq, Jacobson explained that GM had faced startup challenges, particularly with a supplier and the technology involved in module creation. This had caused a bottleneck in the production process.

However, Jacobson assured attendees that the problem had been identified and addressed. In 2022, GM delivered 122 Lyriqs, but in July of this year, it delivered over 1,000, which fell below the company's expectations. Jacobson emphasized that the automaker was working to increase the volume of deliveries.

The Cadillac Lyriq, Cadillac's first EV, garnered significant attention as it sold out within ten minutes when reservations became available in September 2021. Bloomberg reports that the majority of buyers were from the younger generation, including Gen X and Millennials. This is noteworthy considering the average age of a Cadillac buyer is typically in their mid-50s.

However, customers have experienced delays due to a slow start at the Ultium plant in Ohio, US, and software issues with the vehicles. Jacobson acknowledged that the production process had been slower than desired but expressed confidence in the positive customer reception. He stated that the demand for EVs is strong, and the main challenge lies in ramping up production to meet it.

Concerns and criticisms surrounding GM's EV production have persisted for some time. Earlier this year, CEO Mary Barry attributed the slow start of GM's electric vehicles to a supplier. Despite the challenges, GM produced 50,000 EVs in the first half of 2023 for the North American market and aims to manufacture 100,000 vehicles for the region in the second half of the year. The company's target for cumulative electric vehicle production in North America by mid-2024 is 400,000 vehicles.