GM Discontinues Chevy Bolt EV, Shifts Focus to Electric Trucks
General Motors (GM) has announced that it will be discontinuing the production of its Chevrolet Bolt electric vehicle by the end of this year. The decision comes as the company shifts its focus toward zero-emission production of trucks and SUVs built on a new battery platform.
GM CEO Mary Barra informed investors on Tuesday that the company has made significant progress in its EV technology. It is now time to end the production of the Chevrolet Bolt EV and EUV. In 2022, the largest US automaker sold 38,120 Bolt EVs, up from 24,828 in 2011. The Bolt, GM's first mass-market EV, still accounts for over 90% of all GM EV sales in the US.
The Bolt, which starts at $26,500 and qualifies for a $7,500 federal tax credit, has been lauded by the Biden administration as an affordable EV. However, the company's Orion Township Assembly plant that builds the Bolt will now produce Chevrolet Silverado EV and electric GMC Sierra using its next-generation Ultium EV platform.
GM expects to build more than 600,000 electric trucks per year by late 2024, with plans to increase capacity to 1 million units annually in North America by 2025. Barra said that employment will nearly triple when the Orion plant reopens in 2024 and reaches total production.
It is worth noting that GM faced a recall campaign in August 2021, which was later expanded to cover all 140,000 Bolt vehicles produced over battery fire risks. The recall led GM to halt Bolt production and sales for more than six months. However, GM's battery partner LG Electronics Inc agreed to reimburse the automaker for $1.9 billion in costs connected to the Bolt recall.
Overall, this move by GM signifies a shift in the EV market towards larger vehicles, as the company looks to compete with Tesla and other automakers who have focused on the electric truck market. The demand for electric trucks is rapidly increasing, and GM's decision to prioritize the production of these vehicles could help them capture a larger share of the growing market.
This decision also aligns with President Biden's plan to transition the US towards zero-emission vehicles. The Biden administration has set a target of reaching 50% electric vehicle sales by 2030, and GM's focus on electric trucks and SUVs could help the US achieve this goal.
GM's announcement also highlights the importance of investing in EV technology. As more and more companies shift towards electric vehicles, investing in research and development of new EV technologies will become increasingly important to remain competitive in the market.
