GM's epically bad year still earned it billion – but that's not due to EV sales

GM’s epically bad year still earned it $10 billion – but that’s not due to EV sales

Published

10 months ago

January 30, 2024

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GM-incentive-EVs — 2024 Cadillac Lyriq Luxury trim (Source: Cadillac)

Despite a truly terrible year for GM that involved plants being shut down for weeks due to a union strike, Bolt battery recalls, EV production problems, and the nightmare that keeps on giving that is Cruise, General Motors says it should tally up nearly $10 billion for 2023 – but we certainly don’t owe that to stellar EV sales.

GM released its annual forecast with fresh clarity, it says, about labor costs after the ink has dried on new union contracts in North America. Plus it has outlined its upcoming EV strategy, and how it plans to hurdle the fallout from Cruise, which already cost the company $2.7 billion last year.

Last November, GM said that it expected to reach nearly $10 billion, despite the $1.1 billion hit from the six-week UAW strike last year. Plus the Chevy Bolt EV battery recall costs $800 million in costs.

Still, CEO Mary Barra said that GM will “fully offset” those higher labor costs, with $2 billion worth of cuts part of the plan, meaning a lot of lost salaried jobs, reduced marketing spending, and “more efficient” manufacturing operation, according to Automotive News.

EV sales were rough last year: In 2023, GM delivered 75,883 BEVs in the US, about 2.9% of its total volume. Still, that’s a 93% bump from 2022. GM forecasts its total US auto industry sales to hit 16 million in 2024, but it has dropped its goal of making 400,000 EVs through mid-2024. Still, it is aiming to have 1 million EVs by 2025.

This year, the automaker expects adjusted earnings to be anywhere from $12 billion to $14 billion.

GM also says it hopes to turnaround its slow EV ramp-up, particularly around the issues with the Ultium battery architecture and supplier lag, Automotive News reports. GM sent teams up to help set up the assembly lines, and add module capacity to more EV plants, the report said.

Also, last month, Chevrolet stopped sales of its Chevy Blazy EV due to software issues.

General Motors said earlier this month that is finally ramping up production of its Cadillac all-electric Lyriq SUV this year. Barra also expects GM’s “competitive position” to improve, EV-wise, this year with the GMC Hummer EV, Chevrolet Silverado truck, and Blazer EV, although GM has a stop sale on the Blazer due to software issues.

Electrek’s Take

GM has some major hurdles ahead of it in its very immediate future. One, it needs a successful, problem-free launch of its Equinox EV, which starts at $35,000. Morningstar analyst David Whiston said that is its chance to jump ahead of Tesla in the only space Tesla doesn’t hold the reins – and that’s affordable EVs, reports Automotive News.

Dealing with Cruise is another top priority for GM, which just released its own investigation into what happened after a Cruise robotaxi struck and dragged a pedestrian about 20 feet rather than stopping in San Francisco. California’s Department of Motor Vehicles quickly pulled Cruise’s operating permit after the incident, with Cruise pausing all of its operations nationwide soon thereafter – it says it plans to restart in one city, but details aren’t yet available, and honestly, it’s hard to imagine that actually happening.

Meanwhile, a federal probe and independent investigations are looking into whether or not Cruise purposely withheld video footage of the incident from federal investigators. CEO and founder Kyle Vogt called it quits on November 19, followed by a mass layoff of 900 employees as well as nine top execs. Cruise is facing a potential $1.5 million in fines and additional sanctions over its failure to disclose details about the accident. So GM has its work cut out for it.

Photo credit: General Motors/Cadillac

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What makes a Honda a Honda? Prologue engineers help us find out!

Published

5 hours ago

November 16, 2024

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What makes a Honda a Honda? Prologue engineers help us find out!

On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.

Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.

Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.

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Environment

The Eastern US’s first CFI-funded EV charging hub comes online

Published

8 hours ago

November 15, 2024

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The Eastern US's first CFI-funded EV charging hub comes online

CF EV charging — Photo: Joint Office of Energy and Transportation

The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.

The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.

These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.

The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.

Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:

Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.

In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.

The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.

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Environment

Kia’s new low-cost EV4 was just spotted in the US for the first time

Published

9 hours ago

November 15, 2024

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Kia's new low-cost EV4 was just spotted in the US for the first time

Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.

The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.

During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.

Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.

The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.

Kia’s new EV4 is now testing in the US

Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.

The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.

Kia EV4 caught on US streets for the first time (Source: KindelAuto)

Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).

Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.

The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.

Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.