by Cho Seulkina
Published 26 Apr.2023 03:02(KST)
American automaker General Motors (GM) has decided to discontinue the Chevrolet Bolt EV, an electric vehicle subject to a large-scale recall due to battery defects from LG Energy Solution.
According to the Wall Street Journal (WSJ), GM announced on the 25th (local time) that production of the Bolt EV will cease by the end of this year.
The Bolt EV, GM's flagship electric vehicle model, has seen a sharp decline in sales due to a series of battery defects causing fires and recalls since early 2021, ultimately leading to its discontinuation. The Bolt EV uses batteries manufactured by LG Energy Solution.
Currently, GM is accelerating the transition to new battery technology for next-generation electric vehicles. A new electric vehicle model based on this new battery technology is scheduled to be launched in the second half of this year. Additionally, the Bolt production plant will be converted to produce electric pickup trucks.
Despite inflationary pressures and economic uncertainties, GM has raised its performance outlook for 2023.
Paul Jacobson, Chief Financial Officer, explained that vehicle demand remains strong and consumers continue to spend. In the first quarter, consumers in the U.S. spent an average of $50,000 per vehicle, which is a 1% decrease compared to a year ago. Furthermore, there is optimism within and outside the industry regarding pent-up demand from the pandemic period.
On this day, GM reported earnings that exceeded Wall Street expectations. First-quarter revenue increased by 11.1% year-over-year to $39.99 billion, and earnings per share reached $2.21. Previously, Wall Street had forecasted $38.96 billion and $1.73 per share, respectively.
Meanwhile, GM previously announced a partnership with Samsung SDI to invest $3 billion to establish a battery cell manufacturing plant in the U.S., aiming for mass production by 2026.
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