General Motors Co (GM.N) said on Tuesday it will delay production of the electric pickup trucks at its Orion Township, Michigan, plant as it grapples with "evolving EV demand."
The move is the latest sign that electric vehicle production and demand may not be as strong as forecast in the near term. Ford Motor (F.N) said on Friday it was temporarily cutting one shift at its plant that builds the F-150 Lightning EV.
GM had originally been scheduled to begin production of the electric Chevrolet Silverado and GMC Sierra in late 2024, but the company said the plan is now to start it in late 2025.
GM said the change was being made "to better manage capital investment while aligning with evolving EV demand" but said the move does not impact its battery plant plans.
Reuters reported in July the U.S. electric vehicle market is growing, but not fast enough to prevent unsold EVs from stacking up at some automakers' dealerships.
A GM spokesman said the decision was not related to the ongoing talks with the United Auto Workers for a new labor deal. Some analysts have worried that a more costly deal could affect the company's spending plans.
GM still plans a significant boost in EV production in 2024 including adding a new shift at a Detroit-Hamtramck factory that is currently building EV SUVs and pickup trucks. GM will begin building the GMC Sierra EV next year in Detroit.
GM said Tuesday it still plans to end production of the Chevrolet Bolt EV at the end of 2023. GM, which vows to end the sale of gas-powered vehicles by 2035, sells few EVs in the United States outside the Bolt and just 2.8% of its total U.S. sales this year are EVs.
