GM's EV production struggles

author: FutureCar Staff    

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

However, Jacobson assured attendees that the problem had been identified and addressed. In terms of the Lyriq specifically, GM delivered 122 units in 2022, which was below their expectations. To increase volume, the automaker delivered over 1,000 Lyriqs in July. It is worth noting that the Lyriq, Cadillac's first EV, sold out within ten minutes when reservations were made available in September 2021. This attracted a younger generation of buyers, which is significant as the average age of a Cadillac buyer is typically in their mid-50s.

Despite positive customer reception, there have been delays in delivery due to a slow start at the Ultium plant in Ohio, where the Lyriq is manufactured. Software issues with the vehicle have also contributed to the sluggish production. Jacobson acknowledged these challenges and emphasized that the supply side was gradually improving, although not as fast as desired.

Nevertheless, Jacobson expressed confidence in the demand for EVs and highlighted the company's inability to produce them quickly enough as their primary challenge. Criticisms regarding GM's EV production have been circulating for some time. Earlier this year, CEO Mary Barry attributed the slow start to a supplier issue. In the first half of 2023, GM produced 50,000 EVs for North America and aims to manufacture 100,000 more in the second half of the year. Their goal is to have a cumulative total of 400,000 electric vehicles in North America by mid-2024.

FutureCar Staff