General Motors Delays Electric Pickup Truck Production Amid Slowing US Demand

         

Summary: General Motors has announced a delay in the production of electric pickup trucks at a plant near Detroit due to slowing demand for electric vehicles in the US. The factory in Orion Township, Michigan, will now focus on producing electric Chevrolet Silverado and GMC Sierra pickups starting in late 2025, instead of the originally planned start date next year. The decision is aimed at better managing capital investments and implementing engineering changes to improve profitability.

General Motors has decided to postpone the production of electric pickup trucks at its factory in Orion Township, Michigan, as demand for electric vehicles in the US begins to slow. Instead, the factory will focus on producing electric Chevrolet Silverado and GMC Sierra pickups starting in late 2025, a change from the initially planned start date next year. The decision comes as General Motors looks to manage its capital investments more effectively and make engineering changes that will enhance the profitability of the trucks.

About 1,000 workers at the Orion plant will continue to produce the Chevrolet Bolt hatchback and Bolt electric utility vehicle until the end of this year as originally planned. During the closure of the plant, these workers will be offered positions at other General Motors factories in Michigan.

This production delay does not appear to be related to the ongoing strike by the United Auto Workers union, according to General Motors spokesman Kevin Kelly. Instead, it is primarily driven by the changing market conditions for electric vehicles in the US. While the demand for electric vehicles experienced impressive growth in the past couple of years, recent data shows that it has started to level off. In September, for instance, electric vehicle sales dropped to 7.9% of the market, compared to 8.3% in August. Furthermore, the growth rate of EV sales has also slowed, with September seeing a year-over-year growth rate of 56%, down from almost 60% in August.

Industry experts suggest that the slowdown in EV sales can be attributed to the transition from early adopters to regular vehicle buyers, which requires more time and education. As a result, electric vehicle inventory has been growing, and prices have been falling. In September, US dealers had an 88-day supply of new EVs, and the average price of an EV decreased from over $61,000 in January to just under $51,000 in September. However, analysts still expect some growth in EV sales, although at a lower rate compared to previous years.

Despite the delay in electric pickup truck production, General Motors remains committed to expanding its electric vehicle offerings. The company continues to ramp up production at its Factory Zero electric vehicle plant, where it currently produces the Chevrolet Silverado work truck, the GMC Hummer EV, and the Cruise Origin. Plans are in place to add a second shift to the factory next year. Additionally, the US government is offering a tax credit of up to $7,500 for eligible EV buyers, with the credit becoming available at the time of purchase starting next year.

Tags: General Motors, electric pickup truck, US EV demand, production delay, market conditions, factory closure, EV sales growth, electric vehicles, Factory Zero, tax credit

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