In its latest setback, GM is delaying the launch of EV drive production at its Toledo Propulsion Systems plant in Ohio. The company will now begin building electric drives at the end of 2024.
GM delaying another key EV investment
At a meeting on Wednesday, employees at the Toledo plant learned that GM is delaying EV drive unit production by nine months.
The plant was expected to begin building the units in Q1 2024, but that is being pushed back until the fourth quarter. UAW Local 14 president Tony Totty, who represents workers at the facility, said the plan affects about 75 temp workers.
GM shut down its 6-speed transmission line in April, with around 100 temps being laid off. About 25 of them earned permanent positions under the new UAW labor agreement.
In a statement on Wednesday, GM confirmed the news. The automaker said it will “retime the launch of Electric Drive Unit at the plant to Q4 2024 in order to better align with Orion Assembly’s planned production schedule.”
GM revealed a $760 million investment to prepare the plant to build the first electric drive units for its EVs in the US.
The news comes after GM announced it was delaying production of its electric trucks, including the Chevy Silverado RST and GMC Sierra Denali EVs, until late 2025 in October.
GM’s electric trucks will be built at its Orion assembly plant in Michigan, where the current Bolt EV is produced. The company reaffirmed it will “retime the conversion of Orion to EV truck production to late 2025 to better manage capital investment while aligning with evolving EV demand.”
Electrek’s Take
Despite some automakers doubling down on EVs in the US, like Volvo and Hyundai, GM continues to fall further behind.
Hyundai (and Kia) topped GM’s Chevy in US EV registrations in the third quarter, placing second only to Tesla.
While GM is phasing out its cheapest EV, the Bolt, at the end of the year, several new affordable models will hit the market.
Volvo’s EX30, starting at under $35,000, will begin rolling out early next year. Meanwhile, Hyundai launched the new 2024 Kona electric with starting prices under $33,000. The new electric SUV is bigger, better, and smarter in every way. It also includes more range and faster charging.
GM delaying EV truck production will also be a major setback. Tesla launched its highly anticipated Cybertruck while others, including Rivian, continue ramping up output.
The delay is another setback in GM’s plans to provide “EVs for everyone.”
Source: Toledo Blade
FTC: We use income earning auto affiliate links. More.
