Advertisement
For help, call:
At what one analyst called “the most productive GM convention in years,” General Motors CEO Mary Barra laid out the automaker’s plans on Wall Street on Tuesday, adding that she pronounced the reintroduction of the plug-in hybrid generation for cars in North America.
Some GM dealers have reportedly asked GM to plug in hybrids, which are powered by an electric motor or gasoline engine as a backup, arguing that the cars would ease diversity anxiety and charging issues that prevent some car buyers from buying a battery. -electric vehicle. GM last sold a hybrid in the U. S. The Chevrolet Volt was used in the U. S. from 2010 to 2019.
“They’re listening to brokers,” Dan Ives, managing director of Wedbush Securities, told the Detroit Free Press. “It took them a while and they had to convey that direction to appease operators and that’s what consumers want. If you don’t switch to the hybrid, GM would be shooting itself in the foot. “
The news came on a conference call with analysts after GM reported its fourth-quarter and full-year effects last Tuesday morning.
During the detailed call with analysts, Barra outlined the steps GM is taking to fix production of its battery modules for electric vehicles, how GM is dealing with software issues in the Chevrolet Blazer EV that is no longer sold and GM’s plan to relaunch its own system. Driving the car subsidiary Cruise after halting its operations following a twist of fate between the autonomous vehicle and a pedestrian last October.
Barra also said GM is shifting its annual investor day from March to “later in the year” because of ongoing adjustments at GM and Cruise. He said GM would then show investors “more tangible proof” of its business model. GM first postponed its Investor Day last fall, moving it to March, because of the UAW strike.
“It’s the most productive GM convention in years because it was realistic and they owned it,” Ives said. “It’s a big step forward. There’s been some tough times over the last few months and I feel like we’ve gotten through that. “”.
Read more: Ford teases F-150 reveal, plans to capture buyers who still sold EVs
Barra was clear that GM remains committed to EVs and eliminating tailpipe emissions from its light-duty vehicles by 2035.
“But in the meantime, the rollout of plug-in (hybrid) generation in strategic segments will bring some of the environmental impact of electric cars as the country continues to build its charging infrastructure,” he said.
Barra said GM is timing the hybrid launches to help it comply with the “more stringent fuel economy and tailpipe emissions standards that are being proposed.” GM can add the technology to vehicles cost efficiently because GM already has hybrid vehicles for sale in other markets, she said.
He declined to indicate the main percentage points on the timeline or which cars will benefit from hybrid technology.
“I’ll have more percentage for hybrid cap capacity,” Barra said. “We’re going to adjust the capacity because we have the technology, we know the target segments that we’re going to apply it to, so we’re going to have the ability to adapt and do what we want to do from a hybrid perspective. For calendar year 2024, electric cars are our priority. “
Jeff Windau, senior equity analyst at Edward Jones, said GM “has gone all-in on electric cars and now we’re seeing a slowdown in the EV market. “
“But there’s a need for hybrids,” Windau told the Detroit Free Press. “The challenge is when (GM) could launch something. Any type of hybrid launch would require additional expenses. That was not highlighted in today’s discussion. It turns out that “It’s an idea, but they’re not fully committed to it. “
David Whiston, an automotive analyst at Morningstar, told the Free Press that “the hybrid observation is that GM is responding to a real call to oppose the ambitious (zero electric vehicle) goals of GM, the industry as a whole and regulators. Cars are not affordable for many now and you wish there were more public and residential charging facilities. It takes a lot of time. Equinox’s base point, which starts at around $35,000 in the middle of the year, is a key test in determining mass-market reach. “We need electric vehicles, especially if it’s not Tesla that’s taking over. Affordable electric vehicles. “
GM has more than 100,000 reservations for its EV pickups, which GM expects to fulfill in 2024 and 2025, Barra said. She said GM’s joint-venture battery cell manufacturing facility, Ultium Cells LLC, in Ohio is “at full production” and a new Ultium Cells plant in Spring Hill, Tennessee, will began shipping battery cells this quarter.
“In addition, our supply chain team acted on a very temporary basis to obtain resources for two minor moving components that the U. S. Treasury released in its updated IRA guidance in December,” Barra said. “This update means that the new production Chevrolet Blazer EV and Cadillac Lyriq will be eligible for the full $7,500 customer credit. “
Earlier this month, GM announced it would offer $7,500 credits on electric cars that no longer qualify for the tax credits. Barra said GM estimates that will account for about 25,000 electric cars for which GM is paying the discount.
GM has improved the automated equipment at its battery assembly plants used to build the battery modules and GM will install new high-capacity assembly lines by midyear, both helping speed up EV assembly, she said.
Finally, GM is in the process of resolving software issues in the new Chevrolet Blazer EV that have affected some owners’ display screens and shipping capacity, causing the vehicle to stop selling earlier this month.
“They are rushing with an immense sense of urgency to temporarily lift the sales halt,” Barra said. “We have disappointed consumers and we know it. We are committed to getting the software right and we will make it happen. We have made several organizational and procedural innovations that will help us deliver the most productive visitor experience imaginable in the future. “
GM Chief Financial Officer Paul Jacobson said GM would reduce its investment in Cruise by $1 billion this year. The subsidiary is mired in a crisis as the U. S. Department of Justice and the Securities and Exchange Commission have opened investigations into Cruise following the twist of fate in San Francisco with the pedestrian.
Barra said GM began implementing the tweaks needed to build “better cruise ships” after reviewing the effects of a third-party study released last week. GM remains committed to Cruise and believes the autonomous vehicle generation is safer than a human driver, he said. But by introducing “transformative generation,” you want to do so in collaboration with regulators and first responders, Barra said.
“So, when we deploy anywhere, we’re going to make sure that we’re building the right relationships, that they’re perceiving the generation and that they’re perceiving the generation,” Barra said.
In the coming weeks, GM will come up with a plan to restart cruise operations, and GM will calculate that timeline to get robo-taxis back on the roads “soon. “
GM is considering whether future funding for Cruise will come from it or from outside investors, Barra said.
More: GM reports Q4 pretax profits down 54%, but forecasts a stronger 2024
Read more: UAW members at GM to receive $12,250 profit-sharing checks
Contact Jamie L. LaReau at jlareau@freepress. com. Follow her on Twitter @jlareauan. Learn more about General Motors and sign up for our newsletter. Subscribe.
This article made the impression in Detroit Free Press: GM brings hybrid vehicles back to North America
adverti
Advertisement
adverti
adverti
adverti
adverti
adverti
adverti
Advertising
Advertising