General Motors (GM) is wrestling with the production of their electric vehicles, as revealed by a top executive this Wednesday. GM’s Chief Financial Officer, Paul Jacobson, speaking at a J.P. Morgan investor conference, pointed out issues concerning the assembly of battery modules.
This challenge, impacting everything from Cadillac Lyriq SUVs to BrightDrop vans, was “a stumbling block first noted last week by Chief Executive Mary Barra.”
Although GM produced over 1,000 Lyriqs in July, the figures are still underwhelming, especially when contrasted with the company’s initial targets. To illustrate, GM had anticipated rolling out 25,000 Lyriqs from its Spring Hill, Tennessee facility in the previous year but came up short. In fact, in the first half of this year, GM could reportedly only provide customers with fewer than 2,400 Lyriqs due to these complications.
However, it’s not all grim for GM. Jacobson highlighted the Cruise automated vehicle operation, noting it’s entering a “big phase of operational expansion.” With over 400 vehicles now on streets, Cruise has “largely solved all the technology challenges” and remains focused on achieving “$1 billion in revenue in 2025,” as operational costs decrease.