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That re-tool of a brand new plant sort of indicates a “we need a bigger boat” moment at GM, more than the “proof of concept“ idea floated by others. So I wonder if GM’s initial idea was more of limited volume high dollar EVs that maintained more exclusivity in both perception and volume sold?
Was GM also originally thinking of EV Silverado as a range topper that sold few with expansion later down the track?

Much as Ford was caught by surprise by Lightning orders, it looks like GM now has the confidence to expand production years in front of what the original idea was going to be and in doing so, back up Barra’s commitment to EV future.
This is not that hard:
  1. GM started selling Ultium-based EVs before the Ultium battery factory was ready.
  2. With limited battery supplies, GM was limited in the number of vehicles that it could sell. It is better to sell the limited number of vehicles at high prices than low prices because this will likely result in profitable sales rather than loss-leader sales.
  3. The major costs of Ultium-Based vehicles are in engineering and development. By selling the limited number of vehicles at profit, GM will likely cover most of its engineering and development costs before it brings its popular-priced EV Ultium offerings to market.
  4. For all of the talk about the Hummer EV and the Cadillac LYRIQ, BrightDrop and the upcoming Silverado Pro EV do not get enough respect. The vehicles target fleets. The fleet operator owners will maintain comprehensive records of each vehicle, which will be shared with GM. These will be massive tests of Ultium on the job in the Real World before it goes into wide distribution. This is the World's largest gamma test on purpose.
  5. And, yes, it is easier to sell a popular-priced vehicle that is based on technology that was introduced on a premium vehicle than to sell a premium vehicle that is based on technology that was introduced on a popular-priced vehicle. Voltec was a revolutionary technology. However, the Voltec-based Cadillac ELR was considered to be a tarted-up Chevy Volt. The Toyota Prius has been the hybrid vehicle for the past 21 years. It has also been a joke in some quarters. Who would advocate a Lexus version of the Volt? The Nissan Leaf has been has been the EV from a legacy auto manufacturer for the past 11 years. Who would avocate an Infiniti version of the Leaf?
Suffice it to say, I am thoroughly impressed with GM's strategy for converting to electric propulsion. Look at the problems that Ford is now dealing with. Ford would be in much better shape if it had the resources to follow GM's strategy.
 

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All of that is fine but it doesn’t explain why GM now has to spend money reworking a new plant that was set up for Ultium production less Than a year ago. There’s more to this than GM producing before the main Ultium battery production is ready.
Do I have to explain to you the difference between a car and a factory?
 
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