GM Delays Plans for Electric Vehicles, Raises Questions about Future Battery Cell Plants
General Motors (GM) announced on Tuesday that it is further delaying its plans for all-electric vehicles (EVs), including the construction of a second U.S. electric truck plant and the release of Buick’s first EV. The retooling of the electric truck plant in Michigan, originally scheduled for completion in early 2026, will now be delayed by six months until mid-2026. This delay means that GM will not meet its previous target of having a North American production capacity of 1 million EVs by 2025.
During the company’s second-quarter earnings call, GM CEO Mary Barra reassured investors that the company remains committed to growing responsibly and profitably. However, she did not provide updated timing on the release of Buick’s first EV, which was initially expected in 2024. The entire Buick brand aims to become fully electric by 2030, aligning with GM’s broader plans to exclusively offer consumer EVs by 2035.
The delay in GM’s EV plans raises questions about the company’s future battery cell plants, beyond its existing joint venture facilities with LG Energy Solution in North America. Previously, GM had announced plans to build four additional multibillion-dollar battery cell plants in the U.S. by 2026. Barra stated that the company would continue to grow cell production in a “meaningful cadence,” but no specific details were provided.
GM’s Chief Financial Officer (CFO) Paul Jacobson declined to comment on potential delays or cancellations of future EV battery cell plants during a media briefing. He emphasized that the company will be guided by customer demand and highlighted the rapid scaling of its first two cell plants in Ohio and Tennessee.
Despite the delays, GM reported a 40% increase in U.S. EV deliveries during the second quarter compared to the same period last year, reaching 21,930 units. However, EVs still accounted for only 3.2% of the company’s total U.S. sales in the second quarter.
Jacobson stated that GM plans to ramp up assembly to achieve production and wholesale of between 200,000 and 250,000 all-electric vehicles in North America this year. The company wholesaled approximately 75,000 EVs in the first half of the year. He also reiterated GM’s expectation that its EVs will become profitable on a production basis once it reaches an output of 200,000 units by the fourth quarter. However, he acknowledged that additional EV sales are likely to lower the company’s earnings, as they will have lower variable profits compared to GM’s traditional gas models.
The delay in GM’s EV plans and the uncertainty surrounding future battery cell plants raise concerns about the company’s ability to meet its ambitious targets. However, GM remains committed to its long-term goal of transitioning to an all-electric future and capturing a significant share of the growing EV market.
