Photo: GMC | Edited
Despite bullish statements, GM is running out of steam with electric vehicle production. The carmaker fell short of its objective to sell 50,000 EVs in the first half of 2023, with only 36,000 units delivered. The Ultium production ramps too slowly, while the Chevy Bolt EV sales have dipped in the second quarter.
Legacy carmakers are known for their stark statements about electric vehicles, although they rarely deliver on these promises. General Motors is the best example, with CEO Mary Barr vowing to replace Tesla as the EV market leader not once but repeatedly. GM announced massive investments into EV and battery production and appeared determined to take the market by storm. GM is selling three EV models, with another five expected to start production in the year's second half.
With such an impressive lineup, some might be inclined to think that Tesla's days are numbered. Yet, GM's results show the company's EV efforts are all show, no go. Quarter after quarter, EV sales amuse rather than impress. Yet, GM continues to spin the situation as a net positive. When it reported selling two GMC Hummer EV trucks in the first quarter, GM called 2023 "the breakout year for EVs," adding that Cadillac Lyriq deliveries were accelerating rapidly. Only 968 Lyrics were delivered in the first quarter, although it looked like accelerating when compared to the 86 sold in Q4 2022.
The Cadillac Lyriq sales continue to "accelerate rapidly" to 1,348 units in the second quarter. This might look like a nice 39% increase quarter-over-quarter, but it's still close to nothing in the grand scheme of things. In the meantime, GMC Hummer EV accelerated even faster, from the two units sold in the first quarter to a whopping 47 units delivered between April and June. That puts the entire Ultium platform production in the second quarter at 1,395 units.
GM used the aging Chevrolet Bolt EV/Bolt EUV sales of 19,700 units in the first quarter to brag about its EV strategy. "GM is on track to build 50,000 EVs in North America through June and double that in the second half," read the first-quarter sales report. We're past June, and the Detroit carmaker only sold 36,024 EVs in the first six months of the year. This puts in doubt GM's EV strategy and 2023 objectives.
The Chevy Bolt sales dipped in the quarter to 14,000 units (an almost 30% decrease), although GM happily announced that it grew 101% versus Q2 2022. That's the quarter when the Chevy Bolt production was resumed, so less than 7,000 units were produced. The question is what would happen in the following quarters, especially when the Bolt EV is retired at the end of the year.
The second-quarter results paint a bleak image of the Ultium platform, which is in serious trouble. Considering that GM's entire EV strategy depends on it, I wonder what would happen. Sure, GM can launch as many new EV models as it wants because building a prototype is easy. But without significant production numbers, these are bound to remain paper launches and not real products. It seems like GM's strategy is to sell as many ICE vehicles as possible (this is the second quarter of the year with double-digit sales growth) and delay EV production as much as possible. And you know what? It seems to be working.
With such an impressive lineup, some might be inclined to think that Tesla's days are numbered. Yet, GM's results show the company's EV efforts are all show, no go. Quarter after quarter, EV sales amuse rather than impress. Yet, GM continues to spin the situation as a net positive. When it reported selling two GMC Hummer EV trucks in the first quarter, GM called 2023 "the breakout year for EVs," adding that Cadillac Lyriq deliveries were accelerating rapidly. Only 968 Lyrics were delivered in the first quarter, although it looked like accelerating when compared to the 86 sold in Q4 2022.
The Cadillac Lyriq sales continue to "accelerate rapidly" to 1,348 units in the second quarter. This might look like a nice 39% increase quarter-over-quarter, but it's still close to nothing in the grand scheme of things. In the meantime, GMC Hummer EV accelerated even faster, from the two units sold in the first quarter to a whopping 47 units delivered between April and June. That puts the entire Ultium platform production in the second quarter at 1,395 units.
GM used the aging Chevrolet Bolt EV/Bolt EUV sales of 19,700 units in the first quarter to brag about its EV strategy. "GM is on track to build 50,000 EVs in North America through June and double that in the second half," read the first-quarter sales report. We're past June, and the Detroit carmaker only sold 36,024 EVs in the first six months of the year. This puts in doubt GM's EV strategy and 2023 objectives.
The Chevy Bolt sales dipped in the quarter to 14,000 units (an almost 30% decrease), although GM happily announced that it grew 101% versus Q2 2022. That's the quarter when the Chevy Bolt production was resumed, so less than 7,000 units were produced. The question is what would happen in the following quarters, especially when the Bolt EV is retired at the end of the year.
The second-quarter results paint a bleak image of the Ultium platform, which is in serious trouble. Considering that GM's entire EV strategy depends on it, I wonder what would happen. Sure, GM can launch as many new EV models as it wants because building a prototype is easy. But without significant production numbers, these are bound to remain paper launches and not real products. It seems like GM's strategy is to sell as many ICE vehicles as possible (this is the second quarter of the year with double-digit sales growth) and delay EV production as much as possible. And you know what? It seems to be working.
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