General Motors’ decision to halt its electric truck production is sending shockwaves through the automotive industry. It appears that the demand for electric vehicle (EV) trucks isn’t quite what automakers had anticipated.
On October 17, General Motors made the surprising announcement that it would temporarily suspend production of its Chevrolet Silverado EV and GMC Sierra EV truck brands. The automaker explained that it plans to “re-time” the $4 billion conversion of its Orion Assembly plant in Michigan, putting a hold on its transformation into an EV truck manufacturing facility.
However, General Motors emphasizes that this decision is merely a delay in its EV truck line production. Originally scheduled for conversion in 2024, the Orion Assembly plant’s transformation has been pushed back to 2025. This shift is part of GM’s strategy to optimize capital investments and enhance its truck building capabilities, ultimately attracting more buyers, as stated in the company’s official announcement.
As of now, the Orion plant is responsible for manufacturing GM’s Chevrolet Bolt E and EUV models, which will be phased out by the end of this year.
Interestingly, this pause in GM’s EV truck production follows Ford Motor’s recent decision to reduce one shift at its F-150 Lightning EV pickup plant. The Wall Street Journal reported that Ford attributed this decision to lower-than-expected demand among truck buyers, citing an internal memo where F-150 sales were described as having “tanked.”
This recent turn of events should not come as a surprise, as data from AutoPacific indicates that traditional pickup truck drivers are among the least inclined to switch to EV trucks. According to their findings, only 12% of full-sized and 8% of mid-sized pickup truck buyers have shown interest in purchasing an EV truck, as reported by Heat Map.
AutoPacific product and consumer insights analyst Robby DeGraff explains, “Pickup truck buyers are typically deeply rooted in their preferences and tend to resist deviating too far from the traditional pickup truck DNA. Demand for gasoline and diesel-powered pickups remains strong and will likely continue to outshine EV pickups in popularity.”
This decision has had an impact on General Motors’ stock, with shares trading at $29.82 on October 18, down by 11.36% for the year. In contrast, Ford’s stock shares are currently trading at $11.36, showing a modest 1.97% increase on a year-to-date basis. The future of the EV truck market remains uncertain, and automakers are reevaluating their strategies in light of these shifting trends.
