GM Delays EV Drive Unit Production in Toledo by Nine Months

Introduction

General Motors (GM) has announced a further nine-month delay in the start of production for its EV drive unit in
Toledo. This decision comes after the postponement of production for the Silverado EV and the GMC Sierra EV. Despite
the delay, workers at the plant are not opposed to it.

Production Delay

GM informed employees at the Toledo plant about the delay, aligning the start of production with the Orion Assembly
plant’s work on the Silverado and Sierra EVs.

Transition to EVs

The Toledo plant, which previously produced transmissions for combustion vehicles from GM, Buick, Chevrolet, and
Cadillac, ceased production in April. The factory is now preparing to manufacture EV drive units for models such as
the Sierra EV, Silverado EV, and GMC Hummer EV.

Implications for GM

The delay raises concerns about GM falling behind competitors like Ford, Rivian, and Tesla. Chevrolet also lagged
behind Hyundai and Kia in EV registrations during the third quarter. However, union workers in Toledo view this move
positively, believing that the extra time will result in a successful launch.

Union Perspective

“We pride ourselves on having great launches, and the extra time always allows for the best launch possible,” said
UAW Local 14 President Tony Totty. He also expressed concerns about retooling the factory to meet production goals
once it begins in late 2024.

Conclusion

Buyers interested in GM EVs will need to consider options like the GMC Hummer or Cadillac Lyriq, or hope to find a
Blazer EV without a significant markup.