Zacks Equity Research
Wed, September 20, 2023
General Motors Company GM will halt the production of BrightDrop commercial vans in its Ontario plant from October until next spring due to delayed delivery of battery-modules that power the vehicle.
The production of commercial vans in CAMI Assembly will resume in the spring of 2024, underpinned by the launch of CAMI’s new battery module line. The line will produce enough battery modules to fully support the production of BrightDrop vans and supplement electric vehicle (EV) production at other General Motors plants.
In July, Mary Barra, CEO of General Motors, discussed an unspecified issue that decelerated its EV production. The matter involved General Motors’ unnamed automation equipment supplier, which struggled with delivery issues.
The auto giant sent a manufacturing engineering team to help the suppliers regulate its deliveries.
General Motors has also deployed manual module assembly lines at its EV plants, including the CAMI Ingersoll plant. The 400,000-square-foot plant, which will begin battery module production in the second quarter of 2024, is dedicated to producing BrightDrop Zevo and other EVs.
The CAMI plant also suspended operation in July for two weeks due to the unavailability of parts after two weeks of summer downtime.
General Motors met its goal of manufacturing 50,000 EVs in North America during the first half of 2023 and aims for around 100,000 EVs in the second half.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #3 (Hold).
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