Strong third-quarter earnings help bolster aggressive EV goals.
- General Motors has secured enough electric-vehicle battery materials to meet requirements under the federal Inflation Reduction Act for many of its EVs to qualify for the coming $7500 tax credit, CEO Mary Barra told analysts.
- The automaker will boost Chevy Bolt EV/EUV production to 70,000-unit in 2023 in response to growing EV demand, up from a 44,000-unit target this year.
- Barra also touched on several pieces of truck news, including the continued success of combined Chevy Silverado/GMC Sierra heavy-duty truck sales; the pair hold 51.8% percent of retail market share.
With a strong third quarter in which General Motors posted net income of $4.3 billion before income taxes, the slimmed-down automotive giant to help meet burgeoning demand for electric vehicles. CEO Mary Barra also told Wall Street analysts Tuesday in GM’s third-quarter earnings call that the automaker has secured sufficient battery raw materials to meet new federal guidelines under the Inflation Reduction Act for a $7500 electric vehicle tax credit on many of its future high-volume models.
When Congress passed the IRA last August, GM was alone among major automakers and EV newcomers in claiming it could meet strict requirements for local materials sourcing and battery manufacturing. At the time, Barra expressed “support for the Inflation Reduction Act as currently proposed.” As GM awaits the US Treasury Department’s final tax credit rules before it can determine which of its EVs will qualify, “we’re well-positioned, and frankly better than most,” she said.
First of the Ultium battery cells from GM’s new Warren, Ohio, joint-venture plant with LG Energy Solution are going into the GMC Hummer EV, Barra said, with Cadillac Lyriq next. The Ohio plant will supply Chevrolet Silverado, Blazer, and Equinox EVs, “and other models” in 2023.
Ultium battery cells from GM’s new Warren, Ohio, plant are going into the GMC Hummer EV first…
…with the Cadillac Lyriq next. The Ohio plant will supply Chevrolet Silverado, Blazer and Equinox EVs “and other models” in 2023.
Because of the pandemic and supply chain issues, GM has slightly pushed back its goal of delivering 400,000 EVs in North America in 2022-23. The deadline is now 400,000 by the first half of 2024, Barra says. Meanwhile, GM began selling Chinese-sourced Cadillac Lyriqs in September and plans Buick’s first Ultium-powered model there by the end of the year. GM claims its Wuling Hong Guang MINIEV is China’s best-selling electric.
Of course, there’s still plenty internal combustion to be had at GM, which touted in its Q3 report that Chevrolet and GMC heavy-duty trucks hold 51.8% retail market share, having passed Ford in this segment in 2020. To keep that up, GM is increasing HD truck manufacturing capacity by 90,000 units per year.
An all-new GMC Canyon (pictured) midsize pickup rolls out next year alongside a new Chevy Colorado.
All-new Chevrolet Colorado and GMC Canyon midsize pickups launch in 2023, and Barra says their configurations will be simplified, with bed-size and engine options each cut from three down to one. The sole engine option will be the Silverado/Sierra’s 2.7-liter gas turbo I-4, “with more horsepower and torque than the outgoing gas engine,” and 1-2 mpg better fuel efficiency.
GM’s 4.3 billion profit came off $41.9 billion in gross revenues for the third quarter, and it delivered 966,000 wholesale units, for 15.9% market share. The automaker continues to sell a “high mix,” or higher-profit premium-equipped models, and has an average 20-day supply (80 days was the old standard). Barra says GM cleared out its vehicles built earlier in the year and awaiting components—75% of them for trucks—by the end of June.
Keyword: GM Will Increase Chevy Bolt Production by Nearly 60% in 2023