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

-Gudstory

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

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General Motors is pushing ahead with its $4 billion plan to convert its Orion assembly plant into an EV truck factory by the end of 2025, a year behind schedule.

GM’s reasoning behind the delay — which would mean the Orion would sit idle for two years — is to “better manage capital investments while keeping pace with growing EV demand,” the company said in a statement sent to TechCrunch. The company also said it has identified engineering improvements that will be implemented to increase the profitability of its products.

In other words, demand for EVs has changed and is probably not as strong as expected. That soft demand, which we’ve seen at other companies like Lucid’s delivery numbers reported Tuesday, is forcing automakers to adjust timelines and plan to pour billions of dollars into new factories or conversions of existing factories .

GM’s Orion Assembly Plant, where there are approximately 1,271 employees, currently assembles the Chevy Bolt and Chevy Bolt EUV. GM plans to end production of those two vehicles at the end of the year. Union workers at Orion will be offered other jobs in Michigan, including positions at Factory Zero Detroit-Hamtramck Assembly, where the GMC Hummer EV pickup and SUV, the Chevrolet Silverado EV and the Cruze Origin are being produced. Factory Zero workers will also begin building the GMC Sierra EV next year. GM said production at the facility is increasing with plans to add a second shift in 2024.

GM announced in January 2022 that it would invest $4 billion to build an Orion factory to produce electric trucks using the GM-developed Altium platform. The project, as originally outlined, would have included an expansion of the existing facility, adding new body and paint shops as well as new general assembly and battery pack assembly areas.

The conversion is part of a larger $7 billion investment in four Michigan factories focused on battery cell and electric truck manufacturing, including a third plant with partner LG Energy Solutions.

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