GM Has Serious Problems Building And Selling EVs

GM made some lofty promises about itsUltium battery technologythat was meant to help it sell more EVs than Tesla. But things aren't quite going to plan. Paul Jacobson, the Chief Financial Officer (CFO) of GM, has openly acknowledged the company's challenges in scaling up the production of its electric vehicles (EVs) equipped with Ultium technology, according toReuters.

Speaking at an investor conference, Jacobson highlighted that the company's electric vehicle lineup, encompassing models such as theCadillac Lyriqand GMC Hummer EV has been affected by difficulties in assembling battery modules.

CEO Mary Barra initially highlighted this predicament during last month's second-quarter earnings call, where she alsoannounced the developmentof the new Chevrolet Bolt.

The situation was substantial enough to prompt GM to temporarily shut down its CAMI Assembly plant in Ontario, Canada, for two weeks in July due to reported battery shortages.

The slow progression in Ultium battery manufacturing has not only impacted the availability of current vehicle models but also raised concerns about potential delays in the rollout of GM's entire planned EV lineup. This includes already-revealed models like theChevrolet Blazer EV, Equinox EV, and the recently launchedCadillac Escalade IQ.

The difficulties in Ultium battery production have significantly hindered the sales of GM's EVs utilizing this in-house battery technology. Sales figures for the first half of 2023 reveal that only 2,316 units of the Cadillac Lyriq crossover were sold and a mere 65 units of the GMC Hummer EV found new homes.