GM Plots Mass-Market EV Push
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General Motors Co. has talked up its electric vehicle plans for years, and even generated buzz by resurrecting Hummer’s gas-guzzling name in the form of an electric pickup truck. Now comes the tough part: selling mass-market EVs.
CEO Mary Barra will take the stage at the annual CES event in Las Vegas in January aiming to reveal how the Detroit automaker can expand beyond the exclusive — and expensive — plug-in luxury offerings and sell more practical EVs to the broader public. She’ll show off an electric version of the Chevrolet Silverado pickup and also talk about two smaller, cheaper SUVs, according to people familiar with the matter.
It’s an important moment in Barra’s push to electrify GM. The company earned plaudits in 2017 after telling the world it would develop 20 zero-emission vehicles by 2023. Since then, Tesla Inc.’s EV dominance has grown and startups such as Rivian Automotive Inc. have made a splash. GM is also facing pressure from traditional rivals including Ford Motor Co., which scored a hit with the Mustang Mach-E and said this week that it has ambitions to become the market leader while ratcheting up production.
Barra has said that she’ll reveal more about GM’s electric strategy at CES on Jan. 5. “You’ll be impressed with the Silverado and the Equinox and a Blazer-sized vehicle,” she told the Automotive Press Association in Detroit last week.
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GM is sending Barra and other executives to the closely watched event — assuming the spike in COVID cases doesn’t force the show to go virtual as it has with JPMorgan’s health care conference.
While GM offered a peek at the electric Silverado at last year’s CES, the company plans a fuller unveiling this year, just months before Ford begins delivering its competing plug-in F-150. Barra is expected to talk about how the Chevy truck will have variations that are tailored for commercial fleet customers, said one of the people familiar with the matter, who asked not to be identified discussing information that hasn’t been made public. GM is preparing to sell electric delivery vans through its new BrightDrop brand, but has plans to go after the fleet market with Chevy’s electric pickup, too.
GM is unexpectedly having to catch up in the early days of the electric vehicle race. The company has very deliberately laid the foundation for its EV blitz with its Ultium battery pack, which can power every size of vehicle.
Tesla sells by far most of the EVs in the U.S., while Ford is doubling production of the Mach-E amid sustained demand after selling almost 25,000 units. Ford CEO Jim Farley said he has pushed production of the F-150 to 200,000 a year because reservations have been strong. He sees sales of 600,000 EVs by 2024.
Shock, meet awe. The all-new all-electric #GMCSierra #Denali is coming.
Learn more at: https://t.co/XKQmsotFsK pic.twitter.com/AvWO07HsDq — GMC (@GMC) December 15, 2021
In contrast, GM said recently that the electric Silverado won’t start production until early 2023, giving Ford more than a six-month head start.
That lag time has opened the door for rivals to get early buyers. When the company announced its EV plans in 2017, it was widely viewed as the most aggressive challenger to Elon Musk’s lead in electric vehicle development and sales.
Since then, competitors have raced into the EV market. Compounding the issue, GM has had to recall all of its $32,000 Chevy Bolt EVs because of a manufacturing defect in partner LG Chem Ltd.’s plants that led to battery fires.
Volkswagen and its Audi luxury brand are on pace to sell more EVs than GM and Ford this year, said Jeff Schuster, senior vice president of forecasting for LMC Automotive.
Rivian plans to build a truck plant in Georgia. Korea’s Hyundai Motor Co. and partner Kia have several models coming. Toyota Motor Corp. announced it will invest $30 billion to make 30 EVs by 2030. While that trails GM, which plans to make a big push in the next two years, it represents more formidable competition.
“For GM, it’s 2024 time frame and beyond — that’s when you start to see the model ramp-up and volume,” Schuster said.
To further establish a strong, sustainable EV supply chain, we've also announced our plans to build a new magnet factory in the U.S. in collaboration with VAC. Learn more: https://t.co/BlwVjOceA0 pic.twitter.com/NplaHn4YT6 — General Motors (@GM) December 10, 2021
A boost from EVs could help GM maintain the momentum after its shares rose 41% this year through Dec. 15. They’re on track to outpace the S&P 500 Index for the first time since 2013.
In addition to the electric Silverado, GM will show off an autonomous vehicle at CES. There will be a self-driving Cadillac that gives buyers a more personal experience than the Cruise Origin, which is a large shuttle that can seat four to six passengers. Last year at CES, GM showcased an autonomous Cadillac aircraft and a luxury version of the Origin that could serve as a luxury lounge on wheels.
Barra is also expected to elaborate on GM’s plans with its Ultra Cruise driver assist system program and the connected-car services that the company will deliver using its Ultifi software platform, the people said.
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