© Reuters. FILE PHOTO: U.S. Energy Secretary?Jennifer Granholm views an electrical Cadillac LYRIQ 450E on a go to to the Washington Auto Show in Washington, U.S. January 25, 2023. REUTERS/Jonathan Ernst/File Photo
By Paul Lienert
DETROIT (Reuters) – General Motors (NYSE:) is at larger threat than rivals Ford Motor (NYSE:) and Stellantis (NYSE:) of disruption to electrical car manufacturing from a chronic UAW strike – although some analysts say that could additionally buy it time to restore nagging issues.
While Ford and Stellantis are introducing a number of revamped combustion-engine fashions this fall, GM’s instant focus is on electrical automobiles – with plans to launch or ramp up manufacturing of a minimum of 5 new ones. They embrace all-electric companions to its full-size Chevrolet Silverado and GMC Sierra pickups, in accordance to researcher GlobalData.
GM has been struggling a lot of the yr to clean out hiccups in battery manufacturing in addition to its EV provide chain and logistics, together with supply to sellers of its Cadillac Lyriq and GMC Hummer EVs.
The firm delivered simply 1,348 Lyriqs and 47 Hummers within the second quarter, far under expectations, partly due to issues with battery module meeting.
Chief Executive Mary Barra in July advised analysts: “Our automation equipment supplier is struggling with delivery issues,” inflicting a bottleneck that had pressured the automaker to assemble battery modules by hand.
In July, GM government Rory Harvey mentioned the corporate was figuring out supply issues to sellers, noting that Lyriq and Hummer “have been going down the line in very limited quantities (but) we are building momentum.”
An extended strike could assist GM address and probably resolve a few of these ongoing issues in its EV and battery operations, in accordance to Sam Fiorani, vp of worldwide car forecasting at AutoForecast Solutions.
“A production stoppage could allow GM to solve bottlenecks,” Fiorani said.
The automaker has not been able to roll out its most important EVs in a timely fashion, but could benefit if it used the labor stoppage to resolve some of its technical and operational issues, he said.
“GM could ramp up output quicker as soon as the factories begin working once more,” said Fiorani.
‘POTENTIAL NIGHTMARE’
Other analysts say the stoppage is unlikely to work out in GM’s favor. GM’s Barra herself said the strike “wouldn’t be optimistic” for the company and that it needed to reach a deal with workers quickly.
“For GM, a attainable byproduct of an prolonged strike could also be extra time to work out any kinks they’re having with their EV launches, however the potential lack of billions of {dollars} within the course of would make it laborious to justify such a ‘silver lining,'” said Bill Rinna, GlobalData’s director of Americas vehicle forecasts.
Wedbush auto analyst Daniel Ives said the strike was “a possible nightmare scenario” for GM given it comes exactly at a key period of ironing out EV issues.
“In this significant interval of EV execution, mannequin roll-outs, distribution, advertising and marketing, with EV competitors rising throughout the board, the timing could not be worse,” Ives mentioned in a analysis word.
In addition, the UAW strike within the United States could have an effect on the move of crucial auto elements to GM operations in Canada and Mexico, which might hamper EV manufacturing there, Rinna mentioned.
GM’s Ramos Arizpe plant in Mexico has begun constructing the Chevrolet Blazer EV and is including manufacturing of the Chevrolet Equinox EV, whereas its Ingersoll plant in Canada is planning to produce the BrightDrop Zevo 400 electrical supply van, in accordance to GlobalData.
