General Motors (GM) recently announced that it is developing a next-generation Chevrolet Bolt, which will be based on the automaker’s Ultium battery and drive technology. The new Bolt is expected to deliver great affordability, range, and technology. This announcement follows the scheduled launch of three electric vehicles by Chevrolet this year, including the Equinox and Blazer SUVs and the Silverado pickup truck.
GM CEO Mary Barra mentioned during the company’s Q2 earnings call that the new Bolt will be brought to market on an accelerated timeline. However, she did not provide specific details regarding the launch date, following the decision to stop manufacturing the original model, which faced issues such as fires and an expensive battery recall.
Barra highlighted the popularity of the current Bolt, with record sales and high customer satisfaction and loyalty scores. She emphasized that the company will continue the momentum by delivering a new Bolt and executing it more quickly, compared to an all-new program, resulting in significantly lower engineering expenses and capital investment. The new Bolt will incorporate the Ultium and Ultifi technologies.
However, the missing launch date for the new Bolt highlights the ongoing supply issues hindering GM’s production of Ultium batteries. A recent report by The New York Times revealed that most of the EVs produced by GM in the first half of the year still utilized older third-party batteries. GM has sold fewer than 2,800 vehicles in the US that utilize its new Ultium battery packs.
The Detroit Free Press reported earlier this month that battery production was being hindered by extensive issues with the supply chain. GM’s president of North America, Rory Harvey, stated that the only supply chain issue affecting production was related to battery module capacity, and he anticipates a significant increase in EV production in the second half of the year.
Currently, Ultium batteries are used in a limited number of GM vehicles, including the Cadillac Lyriq SUV, the $90,000 GMC Hummer, and delivery vans under the BrightDrop subsidiary brand.
Despite the delays in rolling out the new battery technology, GM’s cash intake does not appear to be significantly impacted. The company reported a profit of $2.6 billion for Q2 2023, up from $1.7 billion during the same period last year. Overall revenue for the second quarter saw a nearly 20 percent increase, reaching $44.7 billion. Barra stated that although GM achieved its 50,000 EV unit production goal for the first half of the year, the company is taking steps to lower its capital spending and aims to reduce operating costs by an additional $1 billion by the end of 2024.
GM has invested significant funds in its EV development, including the development of Ultium batteries. The company plans to invest tens of billions of dollars in Ultium batteries since announcing its modular EV platform in 2020. GM established joint production facilities with LG Energy, including a $2.3 billion facility in Ohio. Two additional facilities are under construction in Tennessee and Michigan to meet the growing demand for Ultium batteries.
The opening of these additional battery production facilities is expected to alleviate sluggish production. GM remains committed to its ambitious goals in the EV market, aiming to deliver 400,000 electric vehicles in North America through 2023 and producing 1 million EVs in the region by 2025. However, the initial 400,000 unit deadline has already been pushed back to 2024 due to battery production issues.
In conclusion, GM’s development of a next-generation Chevrolet Bolt based on its Ultium battery and drive technology showcases the company’s commitment to delivering affordable and advanced electric vehicles. However, ongoing supply issues are delaying the launch of the new Bolt, as most of the EVs produced by GM still use older third-party batteries. The company is working to address these supply chain challenges, and the opening of additional battery production facilities is expected to improve production. Despite these hurdles, GM reported strong financial performance in Q2 2023 and remains focused on achieving its aggressive EV production targets.
