General Motors (GM) looks to get back on track this year as executives believe EV “production hell” is behind it. After missing EV sales targets for the past two years, will 2024 be the year of execution, as GM says it will?
Is GM putting production hell behind it?
After delivering 75,883 EVs last year, GM (again) missed its target of selling 100,000 alone in the second half of 2023.
The automaker encountered freight delays, software glitches, and other issues that delayed timelines. After almost three months, GM lifted the Blazer EV stop-sale earlier this month. GM issued the stop-sale in December, four months after opening orders.
GM confirmed it was pausing sales to fix a software glitch. Chevy said the measure was non-safety-related and impacted a limited number of Blazer EV owners.
To make matters worse, GM ended production of its best-selling Chevy Bolt EV at the end of 2023, which accounted for 62,045 or over 81% of EV sales last year.
GM aims to build 200,000 to 300,000 Ultium-based EVs, or about 20 times more than it did in 2023. The goal is still well short of its previous target of making 400,000 EVs through mid-2024.
2024 Chevy Blazer EV (Source: GM)
CEO Mary Barra said 2024 is the “year of execution” as GM looks to get back on track. “Getting vehicles out there right and getting the software” straight is at the top of the to-do list.
Regarding ramping up Ultium battery production, CFO Paul Jacobson said at a recent speech, “We’ve had some challenges scaling it,” but he added, “I think most of those are behind us.”
The first 2022 GMC HUMMER EV Pickup Edition 1 rolls off the assembly line at Factory ZERO (Source: GM)
GM sold fewer than 14,000 Ultium-based EVs in 2023, including the Cadillac Lyriq (9,154) and GMC Hummer (3,244). The Blazer EV and Silverado EV WT began rolling out in late 2023, with 482 and 461 models sold in 2023, respectively.
Rivian sold more R1S models alone than GM did Ultium EVs last year. With 24,783 R1S models handed over, Rivian’s electric SUV was the seventh best-selling EV in the US. Chevy’s Bolt EV was third.
2023 Chevy Bolt EUV (Source: Chevrolet)
Overcoming hurdles at Factory Zero
GM says it has doubled battery production at its Factory Zero plant since Q4, according to a new Bloomberg report, but more still needs to be done.
The report says GM rushed its own best practices with Ultium production to get batteries out. GM skipped the typical assembly-line setup to test production before getting started.
Instead, the company installed fully automated battery assembly lines at the plant right away rather than testing elsewhere, according to Mike Anderson, vice president of global electrification and battery systems.
Automated robot machines at GM Factory Zero EV plant (Source: GM)
Battery cells must be pressed and packed precisely, so with a robot stacking six battery cell pouches at a time, mistakes can happen.
If the cells don’t line up exactly, the unit will bend, and the cell won’t link with the others. The Detroit Fire Department has been called nine times to Factory Zero since August.
GM aims to overcome the issues after hiring battery experts, consultants, and others, including former Tesla battery expert Kurt Kelty, to fix assembly.
Anderson said he thinks the company has “turned the corner” at its battery factory as it aims to hit GM’s production target this year.
2024 Chevrolet Equinox EV 1LT (Source: Chevrolet)
GM isn’t the only automaker with software issues delaying EV targets. Porsche finally released its all-electric Macan EV earlier this year after a nearly two-year delay. Ford also issued a stop-ship order on the F-150 Lightning in February.
GM will introduce the new Ultium-based Chevy Bolt next year, which will save the company “billions” with LFP batteries.
What do you guys think? GM has broken several promises in the past. Will 2024 be any different? Let us know what you think in the comments.
FTC: We use income earning auto affiliate links.More.
Ruth Porat, President & Chief Investment Officer of Alphabet & Google, speaks during the Reuters NEXT conference, in New York City, U.S., December 10, 2024.
Mike Segar | Reuters
Alphabet‘s Google will invest $25 billion in data center and artificial intelligence infrastructure over the next two years in states across the biggest electric grid in the U.S., the technology company said Tuesday.
Google will also spend $3 billion to modernize two hydropower plants in Pennsylvania to help meet the growing power demand from data centers and AI in the region, according to the company.
The refurbishment of the Pennsylvania plants is part of broader a framework agreement that Google signed with Brookfield Asset Management to purchase 3,000 megawatts of hydroelectric power across the U.S.
Google’s investments in the region comes as the PJM Interconnection is struggling to keep up with rising electricity demand from data centers and industry. PJM is the biggest electric grid in the nation, covering 13 states across the mid-Atlantic and parts of the Midwest and South. It includes the world’s largest data center market in northern Virginia.
President Donald Trump, White House Cabinet officials, tech and energy executives are meeting at Carnegie Mellon University in Pittsburgh on Tuesday to discuss AI investment in Pennsylvania.
Locals call him the “Bicycle hero,” but Texas man Evan Wayne says he’s just doing what he can to help his community after it was cut off due to the recent devastating and deadly flooding tragedy.
When the local Sandy Creek flooded following torrential rains in Texas, it destroyed the only bridge into one community. Residents were cut off from access to supplies, including everything from necessities like food, water, and medicine to basic comforts.
Although the bridge was impassable to cars, volunteers who quickly organized to help the stranded residents found that the damaged bridge could still be traversed on foot. Or in the case of Evan Wayne, it could be covered by an electric bike.
Evan joined hundreds of volunteers who answered the call of grassroots organizers by working together without any official capacity. While many started by hand-pulling garden carts of supplies uphill to reach the stricken community, Evan jury-rigged a trailer to an e-bike and took on as much of the load as he could, helping shuttle much-needed food and gear into the community over hundreds of round-trip journeys.
Advertisement – scroll for more content
“This was a dog trailer 48 hours ago. I had a hacksaw, hacked the top off, grabbed some bungee cords, and here we are,” explained Evan in an interview with CBS Austin, while waiting for the next load of gear to be stacked on his trailer.
In the first two days of the operation, he made around 100 round trips each day, shuttling food and water as well as critical rescue supplies. “Right now, I’m waiting on a couple of chainsaws that I’ll bring in for a crew that’s been going at it with handsaws so far.”
In addition to delivering needed supplies, Evan has often found himself moving something even more important: information. “I’ve flagged down medics. I’ve been the guy that goes between Austin EMT and STAR Flight because I’m quicker than cell phones sometimes, people don’t have signal a lot of the time.”
Evan quickly points out that he isn’t the only one helping. “I’ve got an e-bike, but other people are pulling carts. People are walking, people are carrying things. Everyone is doing what they can.” But there’s no doubt that his ability to carry more gear at higher speeds and make hundreds of round-trip journeys so far in and out of the stricken neighborhood has helped impact countless lives.
“This is all volunteers here. They’re just taking it upon themselves to get people where they need to go. I think there’s an umbrella company coming in, taking over tomorrow, but until they get here, people are just taking care of people, which is what you’ve got to do.”
E-bikes proving their worth in emergencies
While many people consider electric bicycles just another form of recreation, they’ve proven to be potent transportation alternatives after natural disasters worldwide.
Not only do their small and efficient batteries make performing hundreds of rescue trips like Evans’ possible, but recharging can be done simply and easily with a solar panel when electricity is out after a disaster. And when gas stations are out of fuel (or simply can’t pump it with the power grid down), e-bikes can keep running while gasoline-powered motorcycles or ATVs run dry.
Electric bicycle batteries have also proven to be a handy source of emergency power after hurricanes and other disasters, often helping owners keep their phones charged up for days to remain in contact with family or rescue services.
While most hope to never need theirs for emergency purposes, electric bicycles have proven their worth in countless disaster scenarios, adding benefits far beyond just alternative transportation, recreation, or fitness riding.
E-bikes can be kept running nearly indefinitely after natural disasters with access to solar recharging equipment
Image credits: CBS Austin (screenshots), used under fair use
FTC: We use income earning auto affiliate links.More.
Twitter CEO Jack Dorsey testifies during a remote video hearing held by subcommittees of the U.S. House of Representatives Energy and Commerce Committee on “Social Media’s Role in Promoting Extremism and Misinformation” in Washington, U.S., March 25, 2021.
Handout | Via Reuters
Block jumped more than 5% on Monday, leading a rally in shares of fintech companies as analysts downplayed the threat of JPMorgan Chase’s reported plan to charge data aggregators for access to customer financial information.
The recovery followed steep declines on Friday, after Bloomberg reported that JPMorgan had circulated pricing sheets outlining potential fees for aggregators like Plaid and Yodlee, which connect fintech platforms to users’ bank data.
In a note to clients on Monday, Evercore ISI analysts said the potential new expenses were “far from a ‘business model-breaking’ cost increase.”
In addition to Block’s rise, PayPal climbed 3.5% on Monday after sliding Friday. Robinhood and Shift4 recorded modest gains.
Broader market momentum helped fuel some of the rebound. The Nasdaq closed at a record, and crypto rallied, with bitcoin climbing past $123,000. Ether, solana, and other altcoins also gained.
Evercore ISI’s analysts said that even if JPMorgan’s changes were implemented, the most immediate effect would be a slight bump in the cost of one-time account setups — perhaps 50 to 60 cents.
Morgan Stanley echoed that view, writing that any impact would be “negligible,” especially for large fintechs that rely more on debit, credit, or stored balances than bank account pulls for transactions.
PayPal doesn’t anticipate much short-term impact, according to a person with knowledge of the issue. The person, who asked not to be named in order to speak about private financial matters, noted that PayPal relies on aggregators primarily for account verification and already has long-term pricing contracts in place.
While smaller fintechs that depend heavily on automated clearing house (ACH) rails or Open Banking frameworks for onboarding and compliance may face real pressure if the fees take effect, analysts said the larger platforms are largely insulated.