GM Puts the Brakes on the Bolt

Despite the fact that the Chevy Bolt posted record sales in the first quarter of 2023, Detroit-based General Motors plans to discontinue its production by the end of the year (2023).  The Bolt, which debuted in 2016, currently retails starting at $26,595; the larger Bolt EUV starts at $28,195.  Both models are also eligible for the full $7,500 federal tax credit available to domestically- produced electric vehicles (from the Inflation Reduction Act of 2022), as well as various state and local rebates.

For the first quarter of 2023, GM sold a total of 20,670 electric vehicles, 95.3% of which were the Bolt and Bolt EUV.  General Motors recently pulled ahead of Ford to become the country's second-leading seller of all-electric vehicles, though it still lags far behind Tesla's sales volume.

Ivan Drury, Director of Insights at the automotive research firm Edmund, said of the Bolt, "While range and price are compelling, the design, size, and slow charging speeds never quite caught on with consumers, and a series of recalls due to fire hazards likely also made an impact."

The battery cells used in Chevy's Bolts are the BEV2 platform - an older design with different chemistry than the automaker's newer electric vehicles.  In 2021, Chevy had to recall every Bolt that had been produced due to fire risk from a battery manufacturing defect.  GM spent nearly $1.8 billion on this recall.  Going forward, GM will utilize its proprietary Ultium Platform battery architecture for all of its electric vehicles.  Because GM's long-term plan is to sell only electric vehicles by 2035, it makes sense for them to use the same battery technology across all of its models.  The newer chemistry also allows for greatly increased charging speed, which is vital for use in longer trips.  An additional benefit to GM, and hopefully to the consumer, is that the cost of these newer battery packs is nearly 40% cheaper than the BEV2 batteries used on the Bolt.

The Orion, Michigan, plant that currently manufactures the Bolt will be converted for the manufacturing of the electric pickup trucks - both the GMC Sierra and Chevrolet Silverado.  GM's goal is to build 600,000 electric trucks annually when this plant reaches full capacity.  In order to reach this production target, GM will need to approximately triple the current number of employees at this plant.

In reference to GM's long-term all-electric plan, GM's Chair and CEO, Mary Barra, said, "Climate change is real, and we want to be part of the solution by putting everyone in an electric vehicle."  She later followed up with, "GM is positioned to design, engineer, and produce EVs for every style and price point, and we are rapidly building a competitive advantage in batteries, software, vehicle integration, manufacturing, and customer experience."

Many EV manufacturers seem to focus almost exclusively on the high-end high-margin market; the average new EV sold for $58,940 in March 2023, according to Kelley Blue Book.  Chevy has prided itself on having the "America's most affordable EV."  The price point made the Bolt a very tempting choice for consumers.

It also had good range on a single charge at an EPA-estimated 259 miles on a full charge.  This range puts the Bolt in a similar range as some Audi, BMW, Volvo, and Porsche EVs, along with some lower-end Teslas.

Without the Bolt and Bolt EUV, the closest price competitor for an electric vehicle is the Nissan Leaf, with a starting price of $28,040.  (GM is expected to release the Chevy Equinox EV later this year, with a projected starting price of $30,000).  The Hyundai Kona EV starts around $33,550 and the Tesla Model 3 base trim starts around $37,000.  All three of these models qualify for some amount of the EV tax credit, so be sure to check into that before buying an electric vehicle!

Tune in next Tuesday for a follow up to this conversation, where we will discuss EV charging stations!