According to analysts, General Motors (GM) is facing a greater risk of disruption to its electric vehicle (EV) production than its rivals Ford Motor and Stellantis if a prolonged strike by the United Auto Workers (UAW) were to occur. While Ford and Stellantis are focusing on introducing revamped combustion-engine models, GM has immediate plans to launch or ramp up production of at least five new EVs, including all-electric versions of its Chevrolet Silverado and GMC Sierra pickups.
However, GM has been experiencing challenges throughout the year in smoothing out issues with battery manufacturing and its EV supply chain and logistics. This has resulted in delays in the delivery of its Cadillac Lyriq and GMC Hummer EVs, with significantly fewer units delivered in the second quarter than expected.
Despite the potential negative impact of a strike on GM’s EV production, some analysts believe that it could also provide an opportunity for the automaker to address and resolve ongoing technical and operational issues. Sam Fiorani, VP of Global Vehicle Forecasting at AutoForecast Solutions, suggests that a production stoppage could allow GM to solve bottlenecks and potentially ramp up output faster once production resumes.
However, other analysts are less optimistic about the outcome of a strike for GM. Bill Rinna, Director of Americas Vehicle Forecasts at GlobalData, highlights the potential loss of billions of dollars for GM during the strike, making it hard to justify any potential benefits. Furthermore, the UAW strike in the United States could also impact GM’s operations in Canada and Mexico, disrupting EV production in those regions as well.
In conclusion, while a UAW strike poses risks to GM’s EV production, it also presents an opportunity for the automaker to address ongoing issues in its EV operations. However, the potential financial losses and disruptions to international production may outweigh any potential benefits.