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General Motors Postpones Expansion of Electric Truck Production Capacity

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General Motors Electric Truck Production Delay

General Motors has announced the postponement of its plan to augment the production capacity for the Chevrolet Silverado EV and GMC Sierra EV at its Orion Assembly facility in Orion Township, Michigan. The deferral will last for a minimum of one year, according to the company’s statement issued on Tuesday.

Notably, this decision will not impact the scheduled deliveries of the electric full-size trucks. Manufacturing of the Silverado EV Work Truck has already commenced at GM’s Factory Zero facility near Detroit, which is also the production site for the GMC Hummer EV and Cruise Origin. Furthermore, the launch of the Sierra EV’s production at Factory Zero is set to proceed as originally planned in 2024.

The initial announcement for expanding the Orion Assembly plant’s capacity was made by GM early in 2022. The expansion was supposed to involve a $4 billion investment in the facility and the creation of 2,350 new jobs, augmenting the existing workforce of 1,000. Currently, the Orion plant manufactures the Chevy Bolt and its variant, the Bolt EUV. However, the production of these compact electric vehicles is slated to cease this year. Subsequently, the plant is expected to halt operations for approximately two years, during which existing employees will be reassigned.

GMC Sierra EV Production Schedule

In a later part of the announcement, General Motors reiterated its commitment to initiate the production of the Silverado EV and Sierra EV at the Orion Assembly plant in the latter part of 2025. According to the automaker, the delay is a strategic decision to “better manage capital investment” and to adapt to the “evolving demand for electric vehicles.”

GM spokesperson Kevin Kelly, in a statement to the Detroit Free Press, clarified that the delay is not a consequence of the current UAW strike action. He further noted that the growth rate for electric vehicle demand has not met the company’s initial forecasts.

It is worth mentioning that General Motors is not alone in recalibrating its electric vehicle strategies. Ford also recently reduced a shift at its plant that manufactures the F-150 Lightning, resulting in the elimination of 700 positions. In September, Volkswagen abandoned its plans to construct a new electric vehicle plant adjacent to its existing facility at its Wolfsburg headquarters in Germany.

Frequently Asked Questions (FAQs) about General Motors Electric Truck Production Delay

What is the main announcement made by General Motors?

General Motors has announced a postponement of at least one year in its plan to expand the production capacity for the Chevrolet Silverado EV and GMC Sierra EV at its Orion Assembly plant in Orion Township, Michigan.

Will the delay affect the delivery schedules of the electric trucks?

No, the delay will not impact the scheduled deliveries of the Chevrolet Silverado EV and GMC Sierra EV. Production for the Silverado EV has already started at GM’s Factory Zero facility near Detroit, and Sierra EV production will commence as planned in 2024.

What was the initial investment and job creation plan for the Orion Assembly plant?

Initially, GM planned to invest $4 billion into the Orion Assembly plant, aimed at expanding its production capacity for the Chevrolet Silverado EV and GMC Sierra EV. This investment would have created 2,350 new jobs, adding to the 1,000 employees already working at the site.

Why is General Motors postponing the expansion plan?

According to General Motors, the delay is a strategic move to better manage capital investment and adapt to the evolving demand for electric vehicles, which has not been growing as fast as the company had initially forecasted.

Is the delay related to the ongoing UAW strike action?

No, according to GM spokesperson Kevin Kelly, the postponement is not related to the current United Auto Workers (UAW) strike action.

Are other automakers also revising their electric vehicle production plans?

Yes, other major automakers like Ford and Volkswagen are also recalibrating their electric vehicle strategies. Ford has recently reduced a shift at its plant that manufactures the F-150 Lightning, resulting in 700 job cuts. Volkswagen has canceled plans for a new electric vehicle plant in Wolfsburg, Germany.

What will happen to the existing employees at the Orion Assembly plant?

The Orion Assembly plant, which currently produces the Chevy Bolt and Bolt EUV, will halt operations for approximately two years. During this period, existing employees will be reassigned to other roles within the company.

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8 comments

MotownFan October 18, 2023 - 1:33 pm

Orion plant workers getting reassigned huh? Wonder where they’re gonna end up. Hope they don’t lose their jobs for good.

Reply
CryptoKing October 18, 2023 - 5:12 pm

Classic, companies always cite “capital management” when they want to delay things. Maybe their EV tech isn’t up to snuff? Makes ya think.

Reply
InvestorGuru October 18, 2023 - 9:23 pm

This could affect GM stock. Anyone keeping tabs on how this news is impacting their shares?

Reply
JaneDoe42 October 18, 2023 - 9:37 pm

Wow, did not see this coming from GM. They were so bullish on EVs! Now they’re pullin’ back, wonder what it means for the industry as a whole?

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MarketWatch2023 October 19, 2023 - 12:20 am

Interesting, I think this speaks volumes about the challenges of scaling up EV production. Even big players like GM are taking a step back to reassess.

Reply
GreenSkeptic October 19, 2023 - 1:50 am

So they still keep the Sierra in the pipeline for 2024 but delay the plant expansion? Seems like they are hedging their bets to me.

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CarBuff101 October 19, 2023 - 3:01 am

If Ford and VW are also scaling back, then maybe the demand for electric just isn’t there yet.

Reply
EcoWarrior October 19, 2023 - 3:36 am

well this is disappointing. With climate change, we need to be moving faster on EVs, not slower. cmon GM!

Reply

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