GM delays $4B EV truck factory plan by another year

Basic Motors is pushing its $4 billion plan to transform its Orion Meeting plant into an EV truck manufacturing unit to late 2025, a 12 months later than scheduled.

GM’s reasoning behind the delay  — which can imply Orion will sit idle for 2 years — is “to raised handle capital funding whereas aligning with evolving EV demand,” the corporate mentioned in an announcement despatched to TechCrunch. The corporate additionally mentioned it’s recognized engineering enhancements that shall be carried out to extend profitability of its merchandise.

In different phrases, EV demand has modified and perhaps isn’t as sturdy as anticipated. That softening demand, which we’ve seen at different firms equivalent to Lucid’s deliveries numbers reported Tuesday, is forcing automakers to regulate timelines and plans to pour billions into new factories or conversions of present ones.

GM’s Orion Meeting Plant, the place some 1,271 staff, is at present the place the Chevy Bolt and Chevy Bolt EUV are assembled. GM plans to finish manufacturing of these two autos on the finish of the 12 months. Union staff at Orion shall be supplied different jobs in Michigan, together with positions at Manufacturing facility ZERO Detroit-Hamtramck Meeting, the place the GMC Hummer EV pickup and SUV, Chevrolet Silverado EV, and Cruise Origin are being produced. Manufacturing facility Zero staff may even begin making the GMC Sierra EV at subsequent 12 months. GM mentioned manufacturing at this facility has been growing with plans so as to add a second shift in 2024.

GM introduced in January 2022 it will make investments $4 billion to transform the Orion manufacturing unit to supply electrical vans utilizing the GM-developed Ultium Platform. The challenge, as initially outlined, would come with increasing the prevailing facility, including new physique and paint outlets in addition to new normal meeting and battery pack meeting areas.

That conversion is an element of a bigger $7 billion funding in 4 Michigan factories targeted on battery cell and electrical truck manufacturing, together with a 3rd plant with companion LG Power Options.

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