A Refreshed Bolt Is Precisely What GM Wants Proper Now

In GM’s latest Q3 earnings name, CEO Mary Barra revealed some attention-grabbing new particulars in regards to the return of the Chevy Bolt. Based mostly on what she stated and a number of the latest headwinds the EV market has been going through, it appears fairly clear {that a} new Bolt is strictly what GM wants. Let’s begin with the small print she revealed within the name!

What We Discovered About The Subsequent-Gen Bolt

Initially, GM was going to finish Bolt and Bolt EUV manufacturing, changing the automobiles with dearer fashions. Supposedly, the Equinox EV was going to be an ideal substitute, beginning at solely $30,000. However, the plan was all the time to begin with dearer variations of the Equinox, so GM was going to desert the $20,000 and $30,000 segments for some time, after which re-enter them in some unspecified time in the future within the subsequent few years.

Doing that may have made sense in 2021 and 2022, when demand vastly outstripped provide and everybody was jacking up costs. Used automobiles have been typically promoting for greater than new MSRP, and sellers have been including hundreds (if not tens of hundreds) to those already inflated costs. Much more unusually, sellers have been promoting them!

Now, as we get into the later elements of 2023, the scenario has modified tremendously. EVs are piling up on seller tons as an alternative of promoting earlier than they arrive. Everybody has dropped their costs, together with Tesla. Ford has lower manufacturing of the F-150 Lightning, and Chevrolet is placing the Silverado EV off for round a 12 months, and placing different new Ultium EVs (together with the Equinox) off for a number of months to give attention to profitability in manufacturing.

In different phrases, present market circumstances merely aren’t going to permit producers to promote tremendous costly electrical vans and SUVs. So, relying on with the ability to begin on the costly prime and work their means down as volumes improve isn’t going to fly. For the EV transition to work, these corporations are going to wish to supply reasonably priced fashions ASAP and rein in prices for the extra premium choices.

It was throughout this dialogue that the return of the Bolt got here up.

“One other key launch for us is the next-generation Chevrolet Bolt EV. I do know there was some hypothesis out there as to why we’re creating a brand new Bolt EV. Our technique is to construct — is to construct on the large fairness now we have within the model and to do it as effectively as potential.

“Our prior portfolio plans included a number of newly designed automobiles within the entry stage segments and a capital dedication of $5 billion over the subsequent a number of years. Nevertheless, by leveraging the most effective attributes of at this time’s Bolt EUV, in addition to Ultium platform, our software program, and NACS, we’ll ship an excellent higher driving, charging, and possession expertise with a car we all know prospects love. Within the course of, we’re saving billions in capital and engineering bills, delivering a considerably price improved battery pack utilizing bought LFP cells. We’re attending to market no less than two years sooner. And unit price can be considerably decrease.”

There’s loads to unpack right here.

First off, when discussing “prior portfolio plans,” Barra was referring to the recently-abandoned deal between GM and Honda to design and construct cheaper EVs collectively. This left GM with an enormous gap within the reasonably priced market segments to fill, and proper at a time when the corporate is seeing a larger want for price range EVs.

So, GM needed to assume quick, and Chevrolet already has a price range EV. However, let’s face it: the common Bolt EV is form of an unpleasant duckling. People need a extra SUV-like hood, extra inside area, and different crossover options. GM appears to pay attention to this, as a result of the execs determined it could be finest to begin with the EUV.

We’ve got to bear in mind, although, that the EUV nonetheless has some critical shortcomings, even when it appears to be like higher. 55-kW CCS charging is an enormous one, particularly once we take into account the issues the CCS community is going through proper now. It’s additionally bought some fairly terrible software program (particularly the companion smartphone app), and the battery cells aren’t going to be as worthwhile as GM’s Ultium cells.

To unravel these shortcomings, GM plans to place as a lot Ultium know-how as potential on the EUV’s platform, even when it’s not a complete Ultium machine. It will imply sooner charging, higher software program, and many others.. Barra says the corporate can be planning on giving it Tesla’s NACS plug and entry to the Supercharger community, in order that drawback goes to be solved.

However, in a departure from the corporate’s Ultium method, it’s getting a revised battery pack with lithium-iron-phosphate (or LFP, LiFePO4) chemistry. This implies higher sturdiness, decrease prices, and higher income for GM.

Barra Hasn’t Introduced Timelines

I reached out to GM and requested whether or not the delay in transferring the Orion plant to Silverado EV manufacturing will imply extra current-generation Bolt manufacturing. GM’s press individuals didn’t get again to me, nevertheless it appears unlikely that the Bolt will keep on the Orion plant, as a result of it’s being prepped for one thing else.

So, GM might be not going to restart Bolt EUV manufacturing with these new elements very quickly. GM should revise the tooling and put it elsewhere, presumably in Mexico (to maintain prices to a minimal).

However, guessing on how lengthy this can take is tough. If it was a very new car, it might be years, nevertheless it’s not. GM’s largely refreshing and upgrading the prevailing platform, which saves them “no less than two years” in improvement. So, GM may shock us with a a lot sooner timetable than we thought. Or, the corporate may run into snags and take years. We simply can’t predict this.

My finest educated guess is that the GM crew does it pretty quickly. GM wants each to promote reasonably priced and worthwhile EVs, and to not let corporations like Tesla maintain stripping prospects away. It’s additionally vital to satisfy emissions targets with out delivering more and more gutless ICE merchandise to prospects. GM’s management is aware of that delivering worthwhile EVs in each market phase is crucial to their future, in order that they’ll need to get on that ASAP.

Featured picture by Jennifer Sensiba.