In a recent earnings call with investors, General Motors CEO Mary Barra announced the company’s plan to halt production of the Chevy Bolt EV and EUV by the end of 2023. The models currently account for a significant portion of GM’s EV sales, and the company is on track to produce more than 70,000 of them this year, marking a record rate of production.
One of the main reasons for discontinuing the Bolt is its battery cells, which are based on an older design. GM is currently transitioning to its Ultium system, which is set to be used across all of its EV models, to help ramp up the pace of production. The company plans to modify a Detroit-area plant where the Chevy Bolt is made so that it can produce the electric Chevy Silverado and GMC Sierra starting in 2024.
The Bolt’s battery system has led to serious problems for GM in the past. In 2021, the company recalled every Bolt it had ever made due to a battery manufacturing defect that posed a fire risk, costing the company $1.8 billion to resolve.
Despite the Bolt’s relative affordability, the move to discontinue production may be slightly risky for GM, as the Bolt is the most affordable option for a new EV from a major automaker. However, GM is on track to launch several new EVs later this year, including the Equinox EV, which is expected to start at around $30,000 and could help the company’s prospects.
GM has a production target of 2 million EVs per year between the US and China and expects to be able to build 600,000 electric trucks per year once the Michigan plant has been retrofitted and reaches full production. GM delivered more than 20,000 EVs last quarter, putting the company in second place in the US EV market behind Tesla, which delivered 422,000 vehicles in Q1.
In a statement to CNBC, Chevy spokesman Cody Williams said, “When the Chevrolet Bolt EV launched, it was a huge technical achievement and the first affordable EV, which set in motion GM’s all-electric future. Chevrolet will launch several new EVs later this year based on the Ultium platform in key segments, including the Silverado EV, Blazer EV and Equinox EV.”
