A Bolt of Reversal: GM’s Surprising About-Face on Discontinuation

General Motors has surprised many by revealing its intention to launch a fresh version of the Chevrolet Bolt electric vehicle, marking a significant turnaround from their previous plan to discontinue the well-liked and budget-friendly EV, a mere three months ago.

Chief Executive Mary Barra attributed this shift to surging demand, stating, “We can’t keep up with the demand for Bolts at the moment,” during the company’s quarterly earnings call.

The appeal of the Chevrolet Bolt has successfully attracted new customers to GM. The company reports that around 70 percent of individuals who trade in their existing vehicles for a Bolt are actually coming from non-GM vehicle ownership, as per the company’s data.

The upcoming model of the Bolt will integrate GM’s cutting-edge Ultium battery technology. Nonetheless, GM has openly acknowledged recent obstacles related to this technology, exposing “unforeseen delays” in the manufacturing of Ultium battery modules. These delays stem from challenges encountered by a supplier responsible for automated manufacturing equipment.

While the production of Ultium battery cells is advancing faster than anticipated, GM has encountered assembly delays during the creation of clusters known as modules. According to GM’s announcement, to accelerate the delivery process, the company has deployed its engineers to collaborate with the equipment supplier. Concurrently, GM is also engaging in manual assembly of extra battery modules.

During the initial half of 2023, GM achieved the manufacturing of 50,000 electric vehicles within North America. Among these, roughly 80 percent comprised Bolt EVs and the slightly larger Bolt EUV, both of which employed the older, non-Ultium battery technology. Barra has charted a course to escalate production to around 100,000 EVs in the latter part of the year.

These occurrences unfold in the midst of increased rivalry and shifts in pricing within the electric vehicle industry. These events coincide with the ongoing intense discussions between GM and labor unions, including the United Auto Workers (UAW) and the Canadian union, Unifor. There are even indications from UAW leadership that potential strikes could occur if substantial headway is not achieved before the current contract concludes in September( 2023).

An important matter of disagreement for the UAW revolves around the difference in compensation between employees at the recently established Ultium battery-cell facility in Ohio and those working in conventional gasoline-vehicle factories. The Ultium plant is a collaborative effort between GM and South Korea’s LG Energy Solutions. Additionally, the union’s proposition to eliminate employee tiers that lead to reduced wages for newer employees is also under consideration.

GM’s dedication to equitable contracts remains unwavering, underscored by Barra highlighting their history of pursuing just agreements that not only favor employees but also enhance the long-term prosperity of the business.

However, the UAW expressed less conciliatory sentiments, “It’s long past time for GM to pony up, end tiers, pay their employees competitive wages that keep up with the cost of living and provide everyone the ability to retire with dignity,” according to UAW chief Shawn Fain’s statement.

Looking ahead, GM is preparing to unveil the new Bolt on a timeline that has been expedited, with precise timing and supplementary information, such as the manufacturing site, scheduled for future revelation.

However, GM’s resolution to conclude traditional Bolt production at its Lake Orion, Michigan facility by the end of the year remains unchanged. This site will undergo reconfiguration as previously announced, to facilitate the production of electric trucks.

The discontinuation of the Bolt had caused disappointment among EV enthusiasts, as it signified the exit of one of the industry’s smallest and most cost-effective electric vehicles. Starting at $26,500 (plus destination fee), the Bolt also remains eligible for a $7,500 federal tax credit.

Amidst the changing automotive landscape, the Bolt has retained its reputation as an economical option, with a price below $30,000 (plus destination fee). This affordability becomes increasingly significant as new vehicle expenses rise, broadening its appeal to numerous potential buyers throughout the United States.

As GM prepares to introduce the new Bolt with a flourish, their electric vehicle efforts go beyond just affordability, spanning a diverse lineup that includes high-end offerings such as the GMC Hummer EV, Cadillac Lyriq, and Silverado truck. Furthermore, their dedication extends to launching an electric variant of the compact Equinox SUV in the forthcoming fall season, starting at approximately $30,000 (plus destination fee).

For those who are interested in the Chevy Bolt EV or any other model from the popular manufacturer, check out what we have to offer on our online new car inventory, NYE Automotive Group. We carry a wide range of models from the brand in different shapes and sizes. Once you find something that suits your needs, chat with a representative for more information.

Photo Source/Copyright: Chevrolet Pressroom