General Motors (GM) is poised for a potential turnaround in the electric vehicle (EV) market this year, aiming to leave behind the production challenges that have plagued its EV ambitions. Despite missing its EV sales targets for the past two years, GM executives are optimistic that 2024 will be a year of execution.
In 2023, GM delivered 75,883 EVs, falling short of its goal of selling 100,000 vehicles in the second half of the year alone. The company faced various obstacles, including freight delays, software glitches, and a stop-sale order on the Blazer EV, which was lifted after almost three months due to a non-safety-related software issue affecting a limited number of vehicles.
Compounding its challenges, GM ceased production of its best-selling Chevy Bolt EV at the end of 2023, which accounted for over 81% of its EV sales last year.
Looking ahead, GM aims to manufacture 200,000 to 300,000 Ultium-based EVs this year, a significant increase compared to 2023 but still short of its previous target of 400,000 EVs by mid-2024. CEO Mary Barra has dubbed 2024 as the “year of execution,” emphasizing the importance of delivering vehicles with reliable software.
Despite challenges in scaling up Ultium battery production, CFO Paul Jacobson expressed confidence that most of these issues are now behind them. The company sold fewer than 14,000 Ultium-based EVs in 2023, including models like the Cadillac Lyriq and GMC Hummer.
To address production challenges, GM has hired battery experts, consultants, and former Tesla battery expert Kurt Kelty to improve assembly processes at its Factory Zero plant. The plant has faced issues with battery cell alignment, leading to calls to the Detroit Fire Department.
GM’s efforts to overcome these challenges come as other automakers also grapple with software-related delays in their EV programs. Porsche recently released its all-electric Macan EV after a nearly two-year delay, while Ford issued a stop-ship order on the F-150 Lightning in February.
Looking ahead, GM plans to introduce the new Ultium-based Chevy Bolt next year, which is expected to save the company “billions” with LFP batteries.
As GM sets its sights on a successful EV rollout in 2024, the company acknowledges its past shortcomings and aims to regain trust by delivering on its promises this year.
