Report: GM Getting in On Electric Delivery Van Game

GM is launching a multibillion-dollar strategy to get in on the electric commercial vehicle game. The report comes from Automotive News, which sites suppliers familiar with the plans.

According to the source, the codename for the van is BV1 and will begin production in late 2021. GM is debating whether it should sell the van through Chevrolet and GMC, or whether a different brand such as Maven.

The plan may involve GM’s recent announcement that it would co-develop EVs with Honda.

The move would get GM into a market that Tesla currently has no plans to engage in, but one which is busy with other automakers, like VW, Ford, and more. Currently, delivery services like Amazon and UPS are eager to buy fleets of electric vehicles which have a few advantages for local deliveries.

Electric Vehicles are particularly efficient compared to gas-powered vehicles at low speeds and in stop and go traffic, which makes it advantageous for parcel delivery. The silence of the vehicles also makes them attractive in cities and residential areas. The lower maintenance cost of EVs is also attractive for fleet owners.

The ability to develop a fleet of vehicles is also attractive to auto manufacturers. Suppliers familiar with the matter told AN that the commercial vehicle market could be the most profitable EV sector and helps amortize the cost of developing EV chassis.

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