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General Motors Delays Michigan Electric Truck Expansion Until Late 2025

Electric vehicle is the next generation of transportation but adoption has been slow so automakers are also adjusting their plans for productions.

General Motors revealed this week that it will postpone expanding its electric truck production in Michigan. The automaker said it may take a year before it can resume and proceed with the expansion.

This means that General Motors will not be building a new facility for electric truck production until the latter part of 2025. The company said it stopped the plan to manage capital investment better. In addition, it wants to implement improvements to make the new EVs more profitable.

Change of Plans Also Suggest Possible Issues

Despite the explanation for the delay, CNBC reported that the move may also indicate the company’s ambitious EV plans, where it is expected to shell out billions of dollars. It was mentioned that the adoption of EVs has been slower than expected, which may be a problem since the production of electric vehicles is costly.

Carmakers may suffer huge losses if they make lots of units but cannot sell them, or sales could take a lot of time. The company clarified that the change in plans has no connection with the ongoing negotiations with the United Auto Workers union.

Pickup Production in Orion Assembly Plant

While building a new manufacturing plant for trucks will have to wait a little longer, General Motors will focus on manufacturing electric pickups first. These units are set to be produced at General Motors’ second facility in Michigan.

CNN Business mentioned that GM plans to begin producing electric pickups at its Orion Assembly, located just north of Detroit. This is also where the company is making its Chevrolet Bolt EV and Bolt EUV.

“General Motors today confirmed it will retime the conversion of its Orion Assembly plant to EV truck production to late 2025, to better manage capital investment while aligning with evolving EV demand,” GM said. “In addition, we have identified engineering improvements that we will implement to increase the profitability of our products.”

Photo by: CHUTTERSNAP/Unsplash

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