General Motors will end production of its first long-range battery-electric vehicles, the Chevrolet Bolt EV and Bolt EUV, at the end of the year.
The announcement comes at a point when the two models are reporting record sales and helping GM to become second only to Tesla in the U.S. EV market. But the move was not entirely unexpected, as the automaker is transitioning to a new generation of EVs, including all-electric versions of its Chevy Blazer, Equinox and Silverado models.
“We have progressed so far that it’s now time to plan to end the Chevrolet Bolt EV and EUV production,” GM Chairman and CEO Mary Barra said during an earnings call on Monday morning.
First launched in 2016, Bolt served as GM’s first serious entry into the battery-electric market, and underscored CEO Barra’s pronouncement the automaker will switch entirely to all-electric technology by 2035.
Leaving in style
The two versions of the Bolt will go out with a bang, rather than a whimper, GM expecting to produce about 70,000 of them this year. That will position Bolt as the third best-selling EV nameplate in the country, behind Tesla’s Model Y SUV and Model 3 sedan. It helped that Chevy slashed the price of the two Bolt models for this year. And now, with the $7,500 in federal tax credits available to Bolt buyers, an entry level model can be purchased for just under $20,000 before factoring in delivery fees.
Bolt’s strong sales mark a sharp comeback for a product line that was out of production for several months after a series of battery fires were reported in late 2021. GM and its South Korean partner LG Chem had to make numerous revisions to Bolt’s battery pack design before relaunching production early last year.
But Bolt was expected to have a limited future, even with those upgrades. The two versions of the subcompact EV use an older, proprietary vehicle architecture and battery design. GM’s new battery-electric vehicles use an entirely different set of platforms and batteries.
Once production of the Bolt EV and EUV models ends, the automaker will make major updates to its EV plant in Orion Township, Michigan for those new products, Barra added noting that, “When Orion EV assembly reopens in 2024 and reaches full production, employment will nearly triple and we’ll have a company-wide capacity to build 600,000 electric trucks annually.”
New platform for new generation
The new Ultium platform and batteries will be used in dozens of different EV models GM plans to launch by mid-decade, including several already in production, including the GMC Hummer EV and the Cadillac Lyriq. The automaker is preparing to launch production of the Silverado EV pickup this quarter. And the EV versions of the Blazer and Equinox will follow late in the year. An all-electric version of the GMC Sierra is set to follow in 2024.
“As we scale EVs, we will lower fixed costs and will continue to drive margin improvements,” Barra said during the earnings call.
The challenge for GM will be to accelerate production of its next-generation EV models. It debuted its Ultium technology with a limited-volume version of the Hummer and has so far built only about 2,000 of the new Lyriq models this year, Barra noted, even though it has been on sale since last year.
GM has not disclosed the reasons behind the slow rollout of the Lyriq, though speculation has focused on problems at the new Ultium battery plant opened last year in Lordstown, Ohio.
But the pace of production is expected to accelerate up as early bugs are worked out — and as GM boosts EV capacity. Along with the Orion EV assembly line, it will build passenger vehicles in Detroit and Spring Hill, Tennessee. A Canadian assembly line, meanwhile, is now producing delivery vans for GM’s commercial vehicle arm, BrightDrop.
To provide enough batteries for the estimated 1 million EVs GM plans to produce annually in the U.S., the automaker also is expanding its battery production capacity. It has just announced its fourth Ultium battery plant, part of a new alliance with South Korea’s Samsung SDI. Specific details, including the plant’s location, have yet to be announced, but the two companies will spend about $3 billion to bring it online.
There goes the loss-leader.
No legacy auto company is making money with a EV or two today. Time to make way for newer tech and lower costs with Equinox EV.
I looked into EVs for Lyft / Uber driving. The range isn’t there, nor is an affordable ($5000-8000) used EV yet. The situation appears more viable in places like California, where the climate is almost always warm and gas prices are incredibly high, often well over $5 per gallon.
FYI, this is anecdotal, based on posts in forums for Lyft / Uber drivers. One full-time driver bought a Tesla; now he’s earning more and spending less based on spending HUNDREDS a WEEK on gas at $6-8 and more per gallon.
In Michigan the highest we’ve paid for gas is about $4.35 a gallon, and that was for maybe two months. (I immediately joined COSTCO and Sam’s Club to get much lower prices.) Average gasoline prices this month are $3.25-3.80 per gallon (lowest in low income areas like Detroit and Romulus, highest in ritzy suburbs like West Bloomfield and Troy) — still high but not high enough to drive (punny — HAH!) me into an EV. I spend $500 – 600/mo. on gas.
The Bolt’s range is ~260 mi, the Bolt EUV’s ~245. That range can degrade to only 70-80% in winter. As a full-time Lyft driver (it’s a business, we’re independent contractors), I need a SOLID 400-450 mi in summer, which will degrade to about 350 to 400 max in winter.
I can’t afford the much higher prices and limited places of off-site/non-home charging, plus I’d have to upgrade my home charging with a long cord/cable and upgraded electric panel — from 100 to 200 amps — to the tune of ~$1500 – $2,000. NOT in the budget, as I live paycheck-to-paycheck ubering and make up the difference as a landlord.
Even worse, DTE in the Metro Detroit area charges $0.18/ KwH, a fair amount higher than the national average of 12 to 13 cents. (They offer less pricey charging plans at various time periods, but you have to lock in those hours and adjust your schedule to fit them — usually after about 8 PM. I’m not down for that as a nighttime driver active 5PM – 3AM!)
After a decent amount of research, I found EVs aren’t yet a practical option in temperate/colder climates for we who need hundreds of miles of range every day.
NO great options yet for most people who choose Uber/ Lyft as their main or full-time income.
Not sure who drives around a city/suburb and averages +40 mph?
You should definitely look into a Bolt EV for your work. Where sometimes you can find a L2 charger that is free, filling an EV up at home is almost half of what gasoline costs today.
Karl, you may need to rethink your equation, especially if you start with the base versions of either the Tesla Model 3, post price-cuts, or the Chevy Bolt. Factor the $7,500 in tax credits into the latter and you can drive out of the showroom for less than $20,000 before delivery fees and incentives.
As for energy. I suffer DTE, as well. But the new, variable rates mean you’ll pay notably less than $0.18/kWh charging off-peak. Even charging after your 3 AM shift would come in below $0.18. On a per-mile basis that’s about half what you’d pay for gasoline in a comparable ICE vehicle. And you sharply reduce maintenance costs.
Paul E.