General Motors shares fall after warning that battery problems are slowing production of electric vehicles, again
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- General Motors has again noted that problems with producing its new Ultium battery packs are slowing the manufacture of its electric cars.
- CFO Paul Jacobson and CEO Mary Barra both spoke about the battery issue recently.
- Cadillac Lyriq production was particularly affected by the battery problem.
Shares of General Motors (GM) fell nearly 6% Thursday after the automaker again warned that production of its electric vehicle (EV) lineup was slowing due to assembly issues with updated battery modules.
At a conference call, CFO Paul Jacobson reiterated concerns he and CEO Mary Barra expressed when the company released its second-quarter earnings report last month.
The battery problem was particularly affecting the manufacture of the Cadillac Lyriq. More than 1,000 were produced in July, Jacobson said, but that was well below the rate General Motors originally estimated. The company missed production targets last year, and delivered fewer than 2,400 luxury SUVs in the first half of this year.
Overall, GM produced just 50,000 electric vehicles from January to June, and the vast majority were Chevrolet bolt-ons that used an aging battery pack. The new Ultium modular batteries are manufactured at a factory in Lordstown, Ohio that General Motors co-owns with Korea’s LG Energy Solution. Two more battery factories are under construction.
General Motors shares fell to their lowest in more than two months after the news.
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