General Motors (NYSE:GM) revealed Tuesday that the Detroit automaker will delay the production of electric pickup trucks at its Orion Township, Michigan facility as the company deals with "evolving EV demand."
The latest move suggests that electric vehicle production and demand might not be as strong as previously expected. Ford Motor (NYSE:F) announced on Friday that it would temporarily cut one shift at its plant producing the F-150 Lightning EV.
Originally, GM planned to begin production of their electric Chevrolet Silverado and GMC Sierra in late 2024. However, the company recently announced a shift in this schedule, with production now slated to begin in late 2025.
The automaker cited the reason for this change is "to better manage capital investment while aligning with evolving EV demand." However, GM clarified that this alteration does not affect its plans for battery plant development.
A GM spokesperson also specified the decision was independent of the ongoing discussions with the United Auto Workers for a new labor deal.
Despite analysts' concerns over the potential impact of a more expensive agreement, GM remains committed to a substantial increase in electric vehicle (EV) production in 2024. Including the addition of a new shift at the Detroit-Hamtramck factory, which currently manufactures EV SUVs and pickup trucks.
Additionally, GM is set to start production of the GMC Sierra EV in Detroit next year.
GM also reiterated on Tuesday its intention to end production of the Chevrolet Bolt EV by the end of 2023. The company has pledged to discontinue the sale of gas-powered vehicles by 2035. However, its EV sales in the United States remain limited, with only a small fraction, 2.8%, of its total U.S. sales being attributed to EVs this year, aside from the Bolt.
Shares of GM are up 0.85% in afternoon trading Tuesday.