General Motors (GM) announced on Tuesday that it is delaying the production of the Equinox EV, Silverado EV, and GMC Sierra EV. The decision comes as GM aims to protect its pricing and adjust to the shifting demand for electric vehicles (EVs).
During the company’s Q3 earnings call, GM CEO Mary Barra stated that the delay is necessary to moderate the acceleration of EV production in North America. T
his adjustment is aimed at protecting pricing, adapting to slower near-term growth in demand, and implementing engineering efficiency and other improvements to make the vehicles more cost-effective and profitable in the long run.
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Barra also mentioned that the delay in EV production will impact Ultium-based models, including the Equinox EV, Silverado EV RST, and GMC Sierra EV.
This decision follows GM’s recent announcement to delay the production of EV trucks at its Orion assembly plant in Michigan until late 2025.
GM spokesperson Kevin Kelley explained that the production delay is part of the company’s strategy to better manage capital investment while aligning with evolving EV demand.
However, it is important to note that the ongoing United Auto Workers strike, which began in September, also plays a significant role in GM’s production shakeup.
Due to the uncertain labor costs associated with the strike, GM has withdrawn its full-year financial guidance. The company expects to provide more clarity for investors once new union contracts are signed.
Barra emphasized that accepting unsustainably high labor costs would jeopardize the company’s future and put GM team members jobs at risk.
