GM shares fall after warning battery problems are again slowing electric vehicle production

Key takeaways

  • GM has once again noted that issues with production of new Ultium batteries are slowing manufacturing of its electric vehicles.
  • CFO Paul Jacobson and CEO Mary Barra both spoke recently about the issue of the battery.
  • The production of the Cadillac Lyriq was particularly affected by the problem of the battery.

Shares of General Motors (GM) fell nearly 6% on Thursday after the automaker again warned that production of its range of electric vehicles (EVs) was being slowed by problems assembling power modules. updated battery.

During a conference, CFO Paul Jacobson repeated concerns he and CEO Mary Barra raised when the company released its second-quarter earnings report last month.

The battery issue particularly affected the manufacture of the Cadillac Lyriq. Jacobson said more than 1,000 were produced in July, but that was well below the rate originally estimated by GM. The company missed its production targets last year and delivered less than 2,400 luxury SUVs in the first half of this year.

Overall, GM doesn't 39; produced only 50,000 EVs from January to June, the vast majority of them being Chevrolet Bolts that use an older battery. The new Ultium Modular batteries are made at a Lordstown, Ohio plant that GM owns with Korean company LG Energy Solution. Two other battery factories are under construction.

General Motors shares have slipped to their lowest level in more than two months following the news.


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