After hitting its goal of producing 50K EVs in the first half of 2023, General Motors (GM) says it expects the momentum to continue in the second half of the year. Most importantly, GM CEO Mary Barra finally confirmed an Ultium-based Bolt EV (Boltium!) is coming.
GM beats Q2 estimates, Ultium-based Bolt EV coming
General Motors released its Q2 earnings results Tuesday ahead of the market open, showing a 52% increase in net income YOY to $2.54B
The automaker says the improvements came after reducing costs in addition to stronger vehicle sales during the quarter. EBIT-adjusted came in at $3.2B. The results include a $792 million charge for new commercial agreements with LG Electronics and LG Energy Solution.
GM says it took a one-time coincidentally similar charge of $792 million due to costs associated with the Chevy Bolt EV and EUV recall. Speaking of the Bolt, Barra confirmed on the company’s earnings call that Bolt EV will live on.
After the first quarter, Barra revealed GM was ending production of the Bolt EV to focus on its Ultum-based EVs, leaving plenty of people (including myself) disappointed with the decision.
GM has teased the idea of an Ultium-based over the past several months, but Barra confirmed it for the first time on the automaker’s Q2 earnings call. GM’s leader says it will lower expenses and streamline production with the new Bolt EV.
The automaker hit its goal of producing 50,000 EVs in the first half of the year and expects the momentum to continue with a target of hitting 100,000 in the second half of the year. It expects to improve on the 200,000 vehicle run rate in 2024.
Despite Ultium sales lagging (Chevy Bolt accounted for nearly 14K of the 15,652 EVs sold in Q2), Barra says the supply chain is improving, and more EVs were in transit at the end of June.
Top comment by Damon Ekstrom
I'm really glad to see that GM isn't abandoning the Bolt. It never made sense to abandon a line of vehicles that proved overwhelmingly successful, especially an EV that was very affordable for many people. Yeah the Bolt and it's EUV sister may not be lookers, but who cares? It can easily hold it's own next to the best of them. You also get a lot for such a small price, like ventilated seats! Tesla doesn't even offer that in the Model 3 or Y, which is crazy when you consider that you're spending over $50k for those cars/trims.
As they say competition is healthy, and it'll be interesting to see what Tesla brings with it's more affordable "Model 2", and how that stacks up against other vehicles in that same price range.
Demand remains strong for EVs, according to Barra, and the company is working to put the supply chain issues behind them.
GM is launching six new EVs in the second half of the year, including the Chevy Silverado EV WT, Chevy Blazer EV, Chevy Equinox EV, Chevy Silverado EV RST First Edition, Brighdrop Zevo 400, and the Cadillac CELESTIQ.
The company is raising full-year financial guidance after posting better-than-expected results in Q2 and increased plans to cut costs. GM now expects adjusted earnings for the year to be around $12B to $14B, up from $11B to $13B.
However, this is contingent on GM negotiating labor union deals without a strike or delay. Barra said, “We have a long history of negotiating fair contracts with both unions that reward our employees and support the long-term success of our business. Our goal this time will be no different.”
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