General Motors (GM) is at a higher risk of disruption to its electric vehicle (EV) production due to the ongoing strike by the United Auto Workers (UAW), according to analysts. While Ford Motor and Stellantis are focusing on revamped combustion-engine models, GM’s immediate priority is on launching or scaling up production of at least five new electric models, including all-electric versions of its full-size Chevrolet Silverado and GMC Sierra pickups. However, the company has been facing issues in battery manufacturing, EV supply chain logistics, and delivery to dealers. These problems have resulted in below-expectation deliveries of its Cadillac Lyriq and GMC Hummer EVs in the second quarter.
Although a longer strike could give GM the opportunity to address and potentially resolve some of these ongoing issues, other analysts believe that the stoppage would not be favorable for the company. GM’s CEO, Mary Barra, has also expressed the need to reach a deal with workers quickly. The strike comes at a critical period when GM is ironing out its EV issues, and the potential loss of billions of dollars would outweigh any potential benefits from solving technical and operational challenges. Moreover, the UAW strike in the United States could impact the supply of critical auto parts to GM’s operations in Canada and Mexico, further hampering EV production in those regions.
– Source Article: The Globe and Mail
– Definitions: UAW – United Auto Workers, EV – Electric Vehicle