General Motors (GM) is aiming to leave behind its EV “production hell” this year, with executives expressing confidence in a successful turnaround. After failing to meet EV sales targets for the past couple of years, GM is optimistic about its performance in 2024.
Is GM putting production hell behind it?
Last year, GM delivered 75,883 EVs, falling short of its goal to sell 100,000 units in the second half of 2023. The automaker faced challenges such as freight delays, software issues, and other setbacks that affected production timelines. After nearly three months, GM resolved the Blazer EV stop-sale earlier this month, which was initiated in December due to a software glitch.
Furthermore, GM discontinued production of its top-selling Chevy Bolt EV at the end of 2023, which represented over 81% of its EV sales last year.
In an effort to bounce back, GM plans to manufacture 200,000 to 300,000 Ultium-based EVs this year, significantly more than in 2023. Despite this increase, the target falls short of its previous goal of producing 400,000 EVs by mid-2024.
CEO Mary Barra has emphasized that 2024 will be the “year of execution” for GM to correct its course. Ensuring the production and software quality of vehicles is a top priority for the company.
Regarding the scalability of Ultium battery production, CFO Paul Jacobson acknowledged challenges but expressed optimism that most of them are now in the past.
Last year, GM sold fewer than 14,000 Ultium-based EVs, including models from Cadillac, GMC, and Chevrolet. The company is striving to address production challenges and meet its targets for this year.
Overcoming hurdles at Factory Zero
GM has reported doubling its battery production at the Factory Zero plant since Q4, but there is still work to be done. The company chose to implement fully automated battery assembly lines from the start, bypassing traditional setup procedures for production testing.
Although this approach was meant to expedite production, issues have arisen with battery cell alignment. The company has experienced setbacks, prompting nine calls to the Detroit Fire Department since August.
To resolve these challenges, GM has enlisted the help of battery experts, consultants, and former Tesla personnel to optimize assembly processes.
GM is striving to meet its production targets this year, with confidence in the improvements made at its battery factory.
GM is not alone in facing software issues affecting EV production, as other automakers like Porsche and Ford have also encountered delays. Looking ahead, GM plans to launch a new Ultium-based Chevy Bolt next year, leveraging LFP batteries to generate significant cost savings.
Will GM be able to deliver on its promises in 2024? Share your thoughts in the comments section.
FTC: We use income earning auto affiliate links. More.