GM Acknowledges Quality Issues with Electric Vehicles

General Motors chief financial officer Paul Jacobson has acknowledged the automotive giant needs to resolve issues with its electric vehicles, having delayed a number of its impending vehicles over the past year.

Product Delays and Pricing Concerns

One of GM’s most significant product delays was confirmed last year when it said the Chevrolet Silverado EV and GMC Sierra EV would no longer be introduced in 2024 but rather in late 2025. The launch of the Chevrolet Equinox EV was also pushed back, with its starting price set at $34,995, higher than the initial promise. Jacobson emphasized the importance of nailing down prices on EVs to attract new customers.

Focus on Quality and Market Readiness

Jacobson highlighted the importance of delivering high-quality EVs to customers, stating, “Especially when you’re coming with a new platform like these EVs, you’ve got to deliver it with quality to the customers.” He emphasized the need to avoid rushing to hit volume targets before the vehicles are ready for market launch.

Challenges and Solutions

While GM is eager to ensure its EVs are perfect before hitting the market, some new models are still encountering issues. Jacobson believes that once GM sells over 200,000 EVs annually in North America, the Ultium platform will become profitable.

Future Outlook

Jacobson emphasized the importance of stable pricing and careful growth strategies to reach the target sales figures. GM is focused on addressing quality issues with its EVs to ensure a successful market launch.