GM's EV production struggles

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【Summary】GM's Chief Financial Officer, Paul Jacobson, admitted that the automaker has faced challenges in scaling up EV production, particularly due to a bottleneck in the module creation process. Despite delivering fewer Cadillac Lyriq EVs than expected, customer reception has been positive, with high demand from younger buyers. GM aims to increase production to meet the growing demand, but acknowledges that they have not been able to produce EVs fast enough.

FutureCar Staff Aug 25, 2023 10:03 AM PT

During the J.P. Morgan Auto Conference, GM's Chief Financial Officer Paul Jacobson addressed investor concerns regarding the automaker's challenges in electric vehicle (EV) production. Jacobson acknowledged that GM had encountered some "startup challenges" in scaling both the Hummer EV and Cadillac Lyriq.

Specifically, he mentioned that a supplier and the technology related to module creation had created a bottleneck in the production process, causing delays. However, Jacobson reassured attendees that the problem had been identified and addressed.

In terms of the Lyriq, Cadillac's first EV, GM delivered 122 units in 2022 and over 1,000 units in July. Although the July figure fell below the company's expectations, Jacobson emphasized their efforts to increase the volume. Interestingly, the Lyriq attracted significant interest from younger buyers, with reservations selling out within ten minutes.

However, customers have faced delays due to a slow start at the Ultium plant in Ohio and software issues with the vehicle. Jacobson acknowledged the challenges associated with any startup but expressed confidence in the positive customer reception and the future demand for EVs.

GM's EV production has faced ongoing concerns and criticisms. Earlier this year, CEO Mary Barry attributed the slow start to a supplier. Despite these challenges, GM produced 50,000 EVs in the first half of 2023 for North America and aims to manufacture 100,000 more in the second half of the year. Their target is to have a cumulative total of 400,000 electric vehicles in North America by mid-2024.